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TLDR: The Top Ten Real Estate Challenges 2025 Report and
What You Actually Need to Know




The Counselors of Real Estate have put out their annual report. Here's what matters.

With the election settled some uncertainties have cleared - but major industry challenges remain. Here's the quick take on what's actually driving real estate markets in 2025.

The Big Three Issues

  • Debt Crisis: $1.8 trillion in loans due by 2026. Lenders are extending what they can, but we're running out of rope.
  • Interest Rates: The cheap money era is officially over. Expect rates to stay higher than the 2009-2021 period.
  • Insurance Costs: Premiums are skyrocketing with some seeing 200%+ increases. This is crushing NOI across all sectors.
Market Reality Check

  • Office Space: Still a mess. 19.7% vacancy expected by end of 2024. Cities are concerned about their tax bases.
  • Housing: 54% of renters are cost-burdened. The shortage is getting worse, not better.
  • Pricing Gap: Starting to narrow, but buyers and sellers are still far apart. Distressed sales might force the issue.

Bottom Line

We're seeing some clarity on regulatory direction, but the fundamental challenges haven't changed. The big story for 2025 is still about managing through that massive wave of loan maturities. Smart money is watching for distressed opportunities while focusing on capital preservation.


REDD Accounting is a global firm specializing in property accounting and bookkeeping services for real estate companies. Whether you are a small-scale operation or managing a large portfolio of properties, we have the expertise and resources to support your unique needs. In times of market complexity like these, having a dedicated accounting partner who understands the nuances of real estate operations isn't just helpful – it's essential for navigating the challenges ahead.


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