Real estate investors cite rising inflation as their biggest concern in 2022

Real estate investors say inflation is their biggest concern, but even though it’s rising it isn’t stopping them from investing in new projects.

That’s according to the latest survey of 503 investors by the real estate investor financing firm Kiavi.

According to Kiavi, a full 65% of those investors it quizzed cited inflation as a major concern in 2022. Just shy of that was rising interest rates, cited as a worry by 63% of real estate investors, with access to capital being a concern for 58%.

Kiavi Chief Executive Michael Bourque said it’s no surprise that inflation is the top concern among real estate investors, just as it is for many Americans in general.

“Even still, we’re seeing our customers continue to identify smart investments and make good decisions,” Bourque said. “With over two-thirds of U.S. homes 30 years old or more, real estate investors will continue to play an important role as they revitalize aged homes and make them move-in ready for millions of families across the country.”

The survey also highlighted a number of other pain points in the way of investor’s plans, besides those listed above. For instance, a full 45% said there are too many hoops to jump through in order to acquire a property these days, while 44% said there are too many parties involved in a purchase that they need to coordinate with. Another 38% said they lack the data about properties to suitably determine its potential return on investment, while 31% said they lacked information about the process and weren't clear how to begin.

Bourque said these pain points were not a surprise either. “The real estate industry is ripe for disruption. Oftentimes the processes are opaque and paper heavy,” he added.

Another problem investors raised is the long waits they endure to receive financing. The survey showed that while 43% typically wait between one-to-two weeks to obtain financing, others reported much longer waits. For instance, 27% of investors said they typically have to wait up to four weeks to secure funding, while 10% said they have to wait between one and two months. Six percent said they have waited as long as three to six months to secure financing for a real estate deal.