It could also temporarily increase in value if there's a shortage of supply vs demand.

Now there is a shortage of welders and other skilled specialists.

After a Dave Ramsey "moment" I have found myself debt free, 39 years old, in a rental (as I haven't fount the right deal on the home and property I want to own) since selling my last home.I'm in an area that has EXPLODED in value due to recent oil field activity and a shortage of homes for sale, much less for rent.My initial thought was to continue looking for that 50 - 100 acre property to build a home on so that I can leave my kids that "legacy" that many of us in Texas dream of.My thought process has changed as I can't afford it in this area and school district anymore.I'm considering buying 10-15 unrestricted acres and buying a mid sized mobile home to live in for 2 years while continuing to save for that bigger property and modest country home to live in.I'm watching single wides on 1 acre rent for $1500 per month in this area and double wides rent for $2,000 + while larger stick built homes rent for $4,000-$5,000 per month as the oil field workers will "split" a 4 bedroom home at $1,000 per month each without batting an eye.My thought is to buy this property, put the double wide on it, live in it for a couple of years while adding a single wide rental or 2 per year in the process.This oil activity (The Eagle Ford Shale) is expected to be a "20 year play".I can pay cash for the property, as a conventional mortgage would likely prevent me from "splitting" the property into 1/2 -1 acre tracts with mobile homes if I wanted to.My thought is that if I can buy this property at $10,000 an acre, put a used yet remodeled double wide on it for $60,000 - $70,000 to live in temporarily while adding a few $25,000 (after utilities, septic, pads and driveways) single wides that would rent for even $1200 per month I could fund and cash flow my goal of that 50-100 acre "home stead".Have I lost my mind?

@Jason Collins according to a report by rented.com you should be careful about buying an STR in states that are very expensive to live in and certain cities in states where there is a shortage of homes.

Just recently, because of all the hurricanes and I am assuming the shortage of lumber, one of my estimates for an add a level that I am doing went up 8k over a week because of this...

If lived all over Dumas, San Angelo, Hondo, Odessa, Houston area (Sugarland area and around Fort Hood.The only part of Texas I haven't been to is down South by the border line McAllen Texas.I think the issue with investing in West Texas is that there is not much of a shortage of land and the population is not very dense so that brings another set of concerns for me.I'm much more aligned with a lot of Texas' economic policies but I'm not as bullish as some others on the next few decades there.Also, it is sooo hot 🔥 the hottest I've ever been in my life has been Texas and I lived in Honduras for two years so I think I have a good point of reference.

But if you are waiting for the bottom to fall out of multifamily housing, it isn't. with 4.6 million unit shortage and 90 million millennials entering the rental market and Gen Z right behind them.

Because there are LOTS of investors buying the house there is constant shortage of good contractors which is a little stressful.

That being said, Asheville has a shortage of jobs, so it will be hindered in its growth by either A. big businesses coming here or B. people's ability to work remotely. 

You can have low cap rates anywhere, but what differentiates Los Angeles is the strong and well established economy, shortage of housing, diverse urban community, etc.