Resources for Real Estate Investors
Blog Insights
Stay ahead in the real estate investment world with expert insights, market trends, and financing strategies. Explore our latest articles to help you make informed decisions and grow your portfolio with confidence.
Filters:
Apr 14, 2025
Q1 2025 Commentary
Market Softness Brings Opportunity
As we head deeper into 2025, the real estate landscape continues to evolve. Investor sentiment is mixed—part optimism, part hesitation. And frankly, that’s understandable. Inventory is creeping up, buyer urgency is softening, and certain pockets of the market feel like they’re in a holding pattern. But for adaptable investors, this period could offer the best entry points we’ve seen in years.
That may not sound exciting on the surface, but for investors with capital, patience, and a solid strategy, this type of market tends to reward consistency over speed.
To help cut through the noise and identify the signals that truly matter, I’ve outlined five crucial aspects of the current real estate environment that every investor should know.
1. Inventory For Sale is Rising
After several years of breakneck price growth and ultra-low inventory, we’re entering a healthier—if slower—market cycle. We’re finally seeing inventory levels normalize in some markets—especially in the former boomtowns in the Sun Belt.
Properties are sitting a bit longer, sellers are negotiating again, and the power dynamic is beginning to shift in more markets. Days on market are ticking up. Home price growth and rent growth have cooled or plateaued in many metros.
For investors, this is welcome news. Why? Because the past few years have made it tough to source value-added deals. Now, with the pace of resale activity subdued, properties are sitting a bit longer—and investors have a real chance to negotiate again. Whether you’re a flipper or a buy-and-hold operator, this rebalancing opens doors that were closed during the frenzy.
2. Opportunity in Softness: Why Some Weakness May Be Bullish
It’s also worth remembering that real estate markets don’t move in straight lines. Periods of cooling often set the stage for the next leg up. Investors who can stomach short-term uncertainty may find themselves well-positioned when the cycle turns.
Active housing inventory for sale continues to rise, especially in the Sun Belt metros, where higher inventory is giving savvy investors more leverage at the negotiation table—and more room to underwrite conservatively.
The ongoing growth in inventory is driven by strained affordability and rate-induced sluggishness. The fundamentals remain intact—the long-term outlook for rents and demographics is still supportive. This is just a market recalibration. And those who view it through that lens may come out ahead.
3. Be Mindful of Builder Competition
If you’re flipping or leasing homes near active new-home communities, tread carefully. Builders—who’ve seen their inventory of completed unsold homes jump—have affordability advantages you don’t. They can offer big rate buydowns, closing cost incentives, and sometimes eat significant price cuts to move product.
Say you’re planning to list a renovated home for $350K in a school district where a builder is also marketing new construction at $350K to $375K. If your end buyer is rate-sensitive, they may opt for the new build—especially if the builder is throwing in sweeteners.
It’s crucial for investors to avoid direct competition with a national builder’s incentive budget. Knowing the market, understanding comps, and focusing on product differentiation can help navigate this landscape.
4. Stay Disciplined on Tenant Quality
There’s growing chatter about the broader economy softening. Whether or not we enter a true downturn, it’s worth noting that consumer confidence is fragile—and that matters when you’re underwriting tenant risk. Lower-income households, in particular, are showing more strain. Credit card delinquencies are up.
This environment means staying disciplined on your screening, being conservative on your underwriting, and planning for contingencies if rent growth slows or turnover rises.
5. Adaptability Remains Your Greatest Asset
No, I don’t think the average 30-year fixed mortgage rate will return to 4.0% anytime soon. And no, we won’t see the price appreciation that defined 2020–2022. But that doesn’t mean the opportunity is gone—it just means the playbook is different.
For years, this asset class rewarded speed. Now, it’s rewarding discipline and adaptability. That means thinking creatively about acquisitions (bulk deals, off-market leads), getting sharper on your renovation budgets, and being intentional with your portfolio strategy. The investors who thrive in this next phase won’t be the ones waiting for yesterday’s market to return. They’ll be the ones who adjust their approach and find upside in today’s more balanced—but still very investable—landscape.
Mar 25, 2025
Top Real Estate Markets for Rent Growth
The U.S. rental market has cooled off since the red-hot heights of the Pandemic Housing Boom when national multifamily rents surged +16.4% and single-family rents jumped +13% year-over-year in the early months of 2022.
However, the slowdown has not been uniform. Last year, many U.S. rental markets saw multifamily rent growth continue to lag behind single-family rental growth, with some regions even seeing outright declines. Early data for 2025 suggests this trend is continuing.
According to LendingOne’s analysis, nationally aggregated multifamily rents rose +2.7% year-over-year in January 2025, while single-family rents climbed +4.4%.
This growth gap indicates that demand for single-family rentals remains elevated, while multifamily rent growth faces more downward pressure—with the strength of this trend varying greatly by market.
To see which multifamily and single-family rental markets have seen the most rent growth in the last 12 months, LendingOne analyzed data from the Zillow Observed Rent Index (ZORI). Using the ZORI time series data, LendingOne analysts calculated the year-over-year shifts in rent for single-family and multifamily properties by metro area.
Top-line findings from LendingOne’s latest rent analysis:
Single-family rental growth, while subdued compared to the Pandemic Housing Boom days, continues to outperform multifamily rental growth across most U.S. markets.
Small and mid-sized markets in the Northeast and Midwest are seeing the strongest rental growth—for both multifamily and single-family properties.
The weakest rental markets are concentrated in the Southeast, with markets like Austin, Cape Coral, and San Antonio experiencing outright multifamily rent declines since January 2024.
National Rent Change: 12-Month Shift
Change in Metro-Level SFR Rents Between January 2024 and January 2025
Top Metros for Single Family Rent Growth
Among the 200 largest metros with sufficient data, these are the 20 metros with the highest single-family rent growth from January 2024 through January 2025:
Atlantic City, NJ: +14.4%
Manchester, NH: +10.9%
Reading, PA: +10.4%
Huntington, WV: +9.7%
Salinas, CA: +9.6%
Santa Cruz, CA: +9.6%
Flint, MI: +9.4%
Green Bay, WI: +9.3%
Kalamazoo, MI: +9.1%
Evansville, IN: +9.0%
Norwich, CT: +8.3%
Topeka, KS: +8.1%
Fort Smith, AR: +7.9%
Salisbury, MD: +7.7%
St. Louis, MO: +7.7%
Cleveland, OH: +7.6%
Charleston, WV: +7.6%
Santa Maria, CA: +7.4%
Youngstown, OH: +7.4%
Merced, CA: +7.2%
Atlantic City, NJ stands out as the strongest single-family rental market, with a remarkable year-over-year rent growth of +14.4%. Many of the city’s Northeastern neighbors, including Manchester, NH (+10.9%) and Reading, PA (+10.4%), join it at the top of the ranks. This region is strong due to tight housing inventory, limited new construction, expensive neighboring cities, and home price appreciation pushing up rental demand.
The Midwest is also performing well, with cities like Flint, MI (+9.4%) and Kalamazoo, MI (+9.1%) seeing strong single-family rent growth. The region’s relative affordability and increasing demand for rental properties as more people seek budget-friendly housing options amid rising homeownership costs puts upward pressure on rent growth.
Notably, select areas in California are seeing strong single-family rent growth as metros like Salinas (+9.6%) and Santa Cruz (+9.6%), due to limited housing supply and high demand.
Change in Metro-Level Multifamily Rents Between January 2024 and January 2025
Top Metros for Multifamily Rent Growth
Among the 200 largest metros with sufficient data, these are the 20 metros with the highest multifamily rent growth from January 2024 through January 2025:
Reading, PA: +12.8%
Atlantic City, NJ: +12.0%
Lynchburg, VA: +9.5%
Erie, PA: +9.1%
Duluth, MN: +9.0%
Hartford, CT: +8.8%
Shreveport, LA: +8.6%
South Bend, IN: +8.6%
Worcester, MA: +8.5%
Tuscaloosa, AL: +8.3%
Salinas, CA: +8.2%
Bremerton, WA: +8.1%
Bridgeport, CT: +8.0%
Fayetteville, AR: +8.0%
Peoria, IL: +7.9%
Montgomery, AL: +7.8%
Norwich, CT: +7.8%
Charleston, WV: +7.8%
Jackson, MS: +7.8%
Lansing, MI: +7.7%
The Northeast and Midwest are home to the strongest markets for year-over-year multifamily rent growth. Reading, PA leads with +12.8% year-over-year rent growth, followed by Atlantic City, NJ (+12.0%) and Lynchburg, VA (+9.5%).
Meanwhile, the weakest rental markets—for both multifamily and single-family rent growth—tend to be those that overheated during the pandemic boom times. In metros across Texas, Florida, Colorado, and Utah, a large wave of new apartment and single-family construction was delivered in 2023 and 2024, largely driven by multifamily projects and a homebuilding frenzy financed during the period of ultralow interest rates. Some of the downward pressure on rents in these markets could ease as more new inventory is absorbed.
That being said, even in the softer rental markets, single-family rental growth is still faring better than multifamily with 26 metros seeing outright declines in multifamily rents from January 2024 to January 2025, versus only two markets seeing single-family rents drop in that time, according to LendingOne’s analysis.
Big Picture: This year is positioned for another year of single-family rent growth outpacing multifamily rent growth in both the strongest rental markets in the Northeast and Midwest, as well as softer markets across Texas and Florida, where new construction has put downward pressure on rent growth.
Note: The ZORI index is a repeat-rent index that tracks typical market rates by averaging listed rents in the 35th to 65th percentile range, weighted to reflect the full rental housing stock rather than just current listings.
Mar 25, 2025
Top 10 Markets for Fix and Flippers
During the Pandemic Housing Boom, a surge in housing demand, low mortgage rates, and rapid home price appreciation spurred a wave of home flippers into the market, as short hold times and rising values made quick resales highly profitable. Since then, however, higher borrowing costs, compressed margins, and slower price growth have significantly slowed U.S. home flipping activity.
Despite strained housing affordability, certain metro areas can still be considered great markets for home flippers—particularly in those where home prices are still rising, inventory remains tight, and flipper return potential remains strong.
To identify the best markets for home flipping in 2025, LendingOne evaluated the following data for 183 metro area housing markets:
Year-over-year change in home prices between December 2023 and December 2024, according to the Zillow Home Value Index
Year-over-year change in active housing inventory for sale between January 2024 and January 2025, as measured by our analysis of Realtor.com data
Active housing inventory for sale at the end of January 2025 compared to January 2019, as measured by our analysis of Realtor.com data
The typical gross profit on home flips in Q3 2024, according to ATTOM Data
The typical gross return on investment (ROI) on home flips in Q3 2024, according to ATTOM Data
LendingOne’s methodology logic is based on the idea that the tightest housing markets are those where active inventory remains well below pre-pandemic 2019 levels and home prices are rising at an elevated year-over-year rate. These conditions create an environment where flippers are most likely to see appreciation while holding a property this year. To validate this, we also analyzed home flip success in the latest reported quarter to ensure flippers in these markets are still turning a profit.
Let’s take a look at the top 10 markets for home flippers in 2025.
#1 Rochester, NY
Typical home value: $252,247
Year-over-year home price change: 8.2%
Typical flipping gross profit: $95425
Q3 2024 Gross ROI: 78%
Inventory compared to pre-pandemic 2019 levels: -58%
Rochester’s housing market has emerged as the top spot for home flippers in 2025, thanks to surging buyer demand and extremely tight inventory. The city’s relatively affordable home values, steady economic growth, and proximity to natural attractions like the Finger Lakes and Niagara Falls have made it one of the hottest real estate markets in the country. The market is also supported by a robust local economy with companies like Wegmans Food Markets and Paychex employing thousands of residents. With these factors combined, Rochester is poised to offer home flippers strong returns in a thriving, evolving market.
#2 Rockford, IL
Typical home value: $195,139
Year-over-year home price change: 9.7%
Typical flipping gross profit:: $54250
Gross ROI: 47%
Inventory compared to pre-pandemic 2019 levels: -63%
Rockford, IL is an ideal market for home flippers in 2025, with the typical home valued at under $200,000 according to the December Zillow Home Value Index. Its affordable housing is in sharp contrast to the Chicago metro’s steep prices, making it an attractive option for those seeking a move less than two hours away. With hybrid work models here to stay, many are now open to living further from city centers to expand their homebuying options. Rockford has benefited from this trend, making it a strong market for profitable home-flipping activity.
#3 Atlantic City, NJ
Typical home value: $361,464
Year-over-year home price change: 7.4%
Typical flipping gross profit: $144000
Gross ROI: 83%
Inventory compared to pre-pandemic 2019 levels: -58%
Atlantic City is an ideal market for home flippers in 2025, with property prices significantly lower than in nearby parts of New Jersey. The city is on a development kick, with infrastructure improvements and a focus on attracting tourism creating strong demand for both short-term rentals and long-term homes. In January 2025, development group DEEM Enterprises announced it’s secured $3.4 billion in funding for a new waterfront community, featuring a Formula 1 raceway and hundreds of green-energy condominiums. Additionally, Atlantic City’s proximity to major metropolitan areas like New York City and Philadelphia makes it an attractive option for commuters seeking more affordable housing while still maintaining access to these urban hubs.
#4 Syracuse, NY
Typical home value: $234,398
Year-over-year home price change: 9.9%
Typical flipping gross profit: $65000
Gross ROI: 44%
Inventory compared to pre-pandemic 2019 levels: -55%
Syracuse is a top market for home flippers, offering affordable housing, job growth, and access to nature. The city’s lower housing costs make it ideal for purchasing and renovating properties. Micron’s new megafab in nearby Clay, NY, is set to create nearly 50,000 jobs over the next two decades, driving increased demand for housing. Syracuse also has some of the country’s oldest housing stock, so there are a lot of structures in need of restoration and repair. The city’s proximity to natural landscapes like the Adirondacks and Finger Lakes further enhances its appeal.
#5 Scranton–Wilkes-Barre, PA
Typical home value: $205,173
Year-over-year home price change: 6.3%
Typical flipping gross profit: $90000
Gross ROI: 100%
Inventory compared to pre-pandemic 2019 levels: -47%
Scranton, PA, is among the most affordable markets in the country, with a typical home priced at just $205,173, making it a prime location for home flippers seeking value. The city also boasts one of the oldest housing stocks in the country, providing numerous opportunities for renovations and restorations. Scranton’s low property taxes further enhance its appeal, offering homebuyers and investors a cost-effective environment for property investment. Additionally, Scranton’s proximity to major urban centers like Philadelphia and New York City adds to its appeal, as commuters can enjoy more affordable living without sacrificing access to these bustling hubs.
#6 Reading, PA
Typical home value: $290,014
Year-over-year home price change: 6.7%
Typical flipping gross profit: $95000
Gross ROI: 78%
Inventory compared to pre-pandemic 2019 levels: -55%
Reading, PA, is a prime Rust Belt market for home flippers in 2025, offering affordable entry costs and strong resale potential. Home prices continue to climb yet remain well below the national average, allowing investors to buy low and sell high. Just over an hour from Philadelphia, Reading’s steady price growth and strong demand mean increasing profit margins for flippers. Despite higher interest rates, buyers continue to find value, making it an ideal location for profitable renovations and quick resales.
#7 Cleveland, OH
Typical home value: $229,735
Year-over-year home price change: 6.4%
Typical flipping gross profit: $94000
Gross ROI: 78%
Inventory compared to pre-pandemic 2019 levels: -46%
Cleveland, OH, has become a prime market for home flippers in 2025, with home prices continuing to climb through 2024. Despite this surge, the median home price remains significantly below the national average, offering investors affordable entry points. The city’s diverse economy is anchored by massive organizations like the Cleveland Clinic and Cleveland-Cliffs as well as several Fortune 500 companies. Additionally, Cleveland’s older housing stock provides ample opportunities for value-adding renovations. With rising property values, a strong job market, and abundant renovation prospects, Cleveland offers substantial profit potential for home flippers in 2025.
#8 Akron, OH
Typical home value: $218,294
Year-over-year home price change: 6.3%
Typical flipping gross profit: $90500
Gross ROI: 85%
Inventory compared to pre-pandemic 2019 levels: -43%
Akron, OH, is quickly emerging as a strong market for home flippers in 2025, thanks to its affordability, steady home price growth, and proximity to Cleveland. Akron benefits from the economic and job opportunities of the larger metro area while maintaining a more budget-friendly housing market. With inventory still limited, competition for properties is intensifying, but the lower home prices create room for profitable renovations and strong returns.
#9 Springfield, MA
Typical home value: $350,714
Year-over-year home price change: 6.1%
Typical flipping gross profit: $140000
Gross ROI: 74%
Inventory compared to pre-pandemic 2019 levels: -50%
Springfield, MA, stands out as an ideal market for home flippers, particularly because it boasts one of the oldest housing stocks in the region. With limited space available for new development, existing homes are the primary source of market activity, boosting demand for fix and flip projects. The city’s homes are also relatively affordable—sitting well below the Massachusetts average. Flippers in Springfield have opportunities to restore historic homes while investing in the city’s growing market. Additionally, the market’s proximity to larger metropolitan areas like Boston enhances its desirability, drawing buyers seeking affordable housing within reach of major job markets.
#10 Canton-Massillon, OH
Typical home value: $203,126
Year-over-year home price change: 7.9%
Typical flipping gross profit: $55190
Gross ROI: 45%
Inventory compared to pre-pandemic 2019 levels: -42%
Canton, OH, is emerging as an attractive market for home flippers, offering a combination of affordable housing and historical charm. Known as the birthplace of the NFL and home to the Pro Football Hall of Fame, the city’s old housing stock presents ample opportunities for renovation and restoration. The local market is experiencing steady home price appreciation, creating strong potential for profitable flips. With inventory levels significantly lower than pre-pandemic levels, demand for homes is high, driving competition. Additionally, Canton’s proximity to Cleveland adds appeal, attracting buyers seeking affordable homes with access to larger job markets.
Big Picture: While home flipping activity has slowed nationally since the Pandemic Boom, there are still strong home flipper markets in Rust Belt cities and smaller metros in the Northeast and Midwest, where affordable housing, rising prices, and tight inventory create profitable conditions for renovations.
Mar 24, 2025
Fix and Flip Survey: What Investors Expect in 2025
The 2025 home flipping environment is active but cautious, with demand for fix and flip properties and a growing focus on rental conversions. However, expectations for growth across all markets remain muted, and regional challenges like inventory, competition, and rising costs impact sentiment.
In this article, you’ll see the full results of our first LendingOne-ResiClub Fix and Flip Survey. Real estate investors that reported that fix and flips were a part of their investment strategy were eligible to respond to the survey, fielded from February 1 to February 19, 2025. ResiClub, our partner for the survey, is a news and research outlet dedicated to covering the U.S. housing market.
Our findings reveal that the home flipping market in the Northeast remains particularly hot, as price appreciation, tight inventory, and aging housing stock create investment potential for fix and flip projects. However, home flippers in the region face intense competition for properties and elevated purchase prices.
Topline Findings
1. Home Flipper Sentiment and Intent
Fix and Flip Activity:
89% of home flippers plan to conduct at least one fix and flip in 2025.
64% plan to convert at least one fix and flip project into a rental using the fix-to-rent method.
Market Outlook:
78% describe the demand for fix and flip properties as strong in 2025, with 32% saying “very strong.” In the Northeast, 59% of home flippers described demand as “very strong.”
64% of survey participants expect the fix and flip market to stay the same (47%) or weaken (17%) in 2025.
2. Financial Considerations
Renovation Costs:
Home flippers in the Northeast spend the most, with 34% investing over $200,000 per project.
56% of U.S. home flippers say kitchen upgrades provide the best return on investment.
3. The biggest concerns across U.S. markets, according to home flippers
Northeast: Housing inventory is the biggest challenge (34%).
Midwest & Southwest: Competition for properties is reported as the top concern among flippers (31% and 34%).
Southeast: Interest rates are the biggest challenge, with several home flippers specifically noting trouble accessing enough financing for projects
West: Labor and material costs are the top challenge (24%).
How Likely Flippers Are to Conduct a Fix and Flip in 2025
How Many Fix and Flips Investors Complete in a Year
Average Timeline of Project from Purchase to Resale
Renovations with Best ROI
Share of Home Flippers Who Own SFR Properties
Current State of Flippers’ Primary Fix and Flip Market
Biggest Challenges Home Flippers Face in Current Market
How Flippers Describe Demand for Flips in Their Primary Market
How Flippers See the Market Evolving in the Next 12 Months
Average Budget for Fix and Flip Renovations
Biggest Challenges Faced with Fix and Flip Projects
Feb 27, 2025
Housing Inventory Trends: What to Expect in 2025
Active listings and months of supply are crucial indicators of home price momentum. Analysts at LendingOne believe that a rapid increase in active listings can signal potential price weakness as homes take longer to sell. Conversely, a steep decline in active inventory often indicates a heating up housing market as demand absorbs available inventory.
What are we seeing today?
At the end of January 2025, U.S. active inventory still sits below pre-pandemic levels, at 25.3% below what it was in January 2019.
However, national active inventory levels have grown 24.6% year over year, reaching 829,376 in January 2025—a 56% increase from January 2021, when housing inventory hit a historic low. That suggests the housing market has cooled over the past year, giving buyers more leverage in most housing markets.
Analysts at LendingOne looked over the latest inventory data to better understand what could await real estate investors this spring and summer.
LendingOne’s top-line findings:
National housing inventory isn’t high, which puts a floor under national home prices in 2025.
Inventory levels in 2025 are higher than the past few years, indicating buyers in many markets—especially in the Sun Belt—have more opportunities than the past few years.
Some markets, particularly in the Northeast and Midwest remain very tight, with active inventory levels still a fraction of what they were before the Pandemic Housing Boom.
National Active Housing Inventory for Sale
While some housing markets remain seller-friendly, with active inventory levels more than 50% depleted from six years ago, others have moved toward balance—or even into buyer’s market territory. In particular, some Mountain West and Southern metros have seen their active listings climb substantially.
Among the 100 largest metros
10 metros where active listings in January 2025 were up the most since January 2019:
Lakeland, FL: +52%
Colorado Springs, CO: +40%
McAllen, TX: +35%
San Antonio, TX: +33%
Spokane, WA: +25%
Cape Coral-Fort Myers, FL: +22%
Memphis, TN-MS-AR: +21%
New Orleans-Metairie, LA: +20%
Denver-Aurora-Centennial, CO: +19%
Orlando-Kissimmee-Sanford, FL: +19%
10 metros where active listings in January 2025 were down the most since January 2019:
Hartford, CT: -80%
Bridgeport, CT: -80%
New Haven, CT: -72%
Albany, NY: -71%
Providence, RI: -67%
Rochester, NY: -64%
Allentown-Bethlehem-Easton, PA-NJ: -64%
Syracuse, NY: -60%
Worcester, MA: -60%
Portland-South Portland, ME: -58%
Metro areas where active inventory has grown above pre-pandemic 2019 levels have generally seen home price growth slow, with some even experiencing outright price declines in the past year. For example, in Cape Coral, Florida where the active listing level is 22% higher than it was in January 2019. home prices have fallen -6% year-over-year.
Meanwhile, the country’s tightest housing markets are seeing the strongest price growth. In Hartford, Connecticut—where inventory remains among the lowest—home prices have risen 7% over the past year.
Big Picture: Rising housing inventory in 2025 is giving homebuyers more negotiating power in many markets. However, persistently tight supply in the Midwest and Northeast continues to drive price appreciation in those regions.
Feb 18, 2025
The Strongest and Weakest Housing Markets in 2025
During the Pandemic Housing Boom, surging demand fueled by low mortgage rates and remote work flexibility caused active inventory levels to drop sharply nationwide. Builders couldn’t keep up, and active inventory for sale was drained by red-hot demand, leaving markets with historically low supply.
Analysts at LendingOne believe that a key indicator to watch throughout 2025 is regional active inventory levels relative to pre-pandemic levels in 2019. Markets where active inventory is furthest below pre-pandemic levels are likely to remain strong, with sellers retaining the upper hand. Conversely, in markets where active inventory significantly exceeds pre-pandemic levels, housing markets are expected to be softer, with weaker pricing momentum—offering investors and buyers increased leverage.
To identify the nation’s 10 strongest and 10 weakest housing markets of 2025, LendingOne compared current active inventory levels to those of the same month in 2019. The analysis also incorporated year-over-year inventory growth, year-over-year home price shifts, and the three-year change in median days on market. In total, we examined the nation’s 250 largest metro area housing markets.
LendingOne’s Topline Findings:
A number of small and mid-sized metros in the Northeast and Midwest lead the list of the strongest housing markets in 2025. These markets are driven by persistently low active inventory levels and greater affordability compared to many other regions in the country.
In contrast, several Southern markets, including many in Florida and Texas, rank among the weakest and softest housing markets currently, offering homebuyers and investors some leverage. These markets have seen a significant inventory increase and cooling demand.
The 10 Strongest U.S. Housing Markets in 2025
These are the 10 strongest markets to start 2025:
Erie, PA
Rockford, IL
Bloomington, IL
Manchester, NH
Hartford, CT
Binghamton, NY
Rochester, NY
Norwich, CT
Albany, NY
Atlantic City, NJ
According to LendingOne’s analysis, the strongest housing markets in 2025 are characterized by a combination of rising home prices, limited active inventory, and fast property turnover. These qualities signal potential for price appreciation, rental income growth, and sustained market expansion in the coming year.
Northeastern and Midwestern metros dominate this list. Compared to high-cost coastal or Sunbelt markets, homes in these regions remain more affordable, attracting first-time buyers, downsizers, and remote workers seeking budget-friendly housing.
Several cities at the top of LendingOne’s ranking fit this description, including Rockford, Illinois, less than 100 miles from Chicago, as well as Hartford and Norwich, Connecticut, and Atlantic City, New Jersey, which serve as commuter hubs for New York City.
A lack of homebuilding in Midwest markets like Rockford, IL, and Northeast markets like Manchester, NH, further contributes to the tightness of these markets. Without significant pressure from homebuilders offering mortgage rate buydowns to boost sales in this affordability-challenged environment, existing home sellers across much of the Northeast and Midwest remain just about the only option for buyers.
The 10 Weakest U.S. Housing Markets in 2025
These are the 10 weakest markets to start 2025:
Punta Gorda, FL
Cape Coral, FL
Huntsville, AL
Lakeland, FL
Killeen, TX
Palm Bay, FL
Lubbock, TX
Colorado Springs, CO
Naples, FL
Ocala, FL
Florida stands out as the home state of many of the weakest markets in 2025. This is largely due to high active inventory levels, as the state is grappling with unabsorbed new supply from a construction frenzy that followed the Pandemic Housing Boom and a pullback in housing demand.
Many Florida markets heavily rely on home buyers who are moving to the region or are purchasing a second home. Sky-high condo HOA fees, rising property taxes, and soaring insurance premiums—exacerbated by a high risk of extreme weather-related damage—have priced out would-be buyers in many markets in Florida.
Not to mention, Florida’s condo market is feeling the aftereffects of regulations passed following the Surfside condo collapse in 2021.
As a result, home price growth in many Florida housing markets is significantly weaker than a few years ago. Indeed, from November 2023 to November 2024, home prices fell -7.8% and -5.9% in Punta Gorda and Cape Coral respectively, according to LendingOne’s analysis.
Big Picture
The strongest U.S. housing markets heading into 2025 are small and mid-sized metro areas in the Northeast and Midwest, where tight inventory and strong demand drive home price growth. Meanwhile, high inventory levels and cooling demand are weighing down or softening many Southern housing markets.
Jan 27, 2025
Q4 2024 CEO Report: Investor Confidence on the Rise
The real estate investment landscape is looking brighter and more promising as 2025 begins. Following a period of significant changes resulting from the pandemic, real estate investors are now benefiting from more stabilized borrowing costs and a clearer economic outlook. As the housing market steadies and for-sale inventory returns to normal levels, we expect more favorable buying opportunities to emerge in some markets.
While investors haven’t seen the significant pullback in mortgage rates many had hoped for when the Federal Reserve began its rate-cutting cycle, several factors are coming together that could make 2025 a year of opportunity for investors.
Here are a few things to know as the 2025 housing market kicks off.
Election Uncertainty Is Behind Us—and It’s Fueling Momentum
Uncertainty surrounding elections can significantly impact major capital and investment decisions. We saw a build-up of decisions that did not happen for a few months leading up to the election. There’s always going to be a psychological component to the housing sector and our investors were seeking more certainty on housing, interest rates, and economic policies.
With the political landscape now more transparent, we’re seeing a first-hand tangible uptick in deal-making and long-term planning. While there’s still uncertainty surrounding the 2025 fiscal policy agendas, some investors who had delayed decisions last year are jumping back into the market.
Improving Investor Sentiment
Among single-family investors we surveyed in Q4 2024, 76% say they are either “very likely” (55%) or “somewhat likely” (21%) to buy at least one investment property in 2025.
This marks improving investor confidence: In our Q3 2024 survey, just 60% of single-family investors said they were “very likely” (38%) or “somewhat likely” (22%) to buy at least one investment property in the next 12 months.
While single-family investors may not be overly bullish, they are cautiously optimistic. 76% expect at least mild home price appreciation in their local market in 2025, and 84% plan to raise single-family rents this year.
Inventory Is on the Rise
Total active listings for sale are beginning to rebound in certain parts of the country, even as new listings remain subdued.
Much of this rise in active inventory has been concentrated in the Southwest and Southeast, areas that experienced significant demand during the pandemic housing boom. As active inventory climbs, investor buyers in these regions gain some negotiating power.
Analysts at LendingOne expect year-over-year growth in U.S. active inventory to continue in 2025. It might not be a big inventory jump, but it will help move housing into a more balanced market.
Big Picture
As the U.S. housing market evolves in early 2025, I expect investment activity to rise and investors to adapt to the changing market. Institutional and retail investors are recalibrating to meet the demands of a market characterized by stabilized interest rates and normalizing inventory. While challenges persist, particularly around affordability and supply, opportunities are available for those with more value-added strategies. Inventory and days on the market of properties requiring renovation have increased, which is positive for real estate investors going into the year.
Dec 13, 2024
The 2025 Real Estate Investor Outlook
The 2025 outlook for single-family investors is cautiously optimistic about rental demand, rent growth, price appreciation, but it’s tempered by concerns over rising costs and interest rates. Overall the good news is, investors are more optimistic and plan to purchase more than just last quarter. Single-family rental investors appear poised to navigate these dynamics with a focus on strategic acquisitions and market adaptability.
In this article, you’ll see the full results of our fourth quarter LendingOne-ResiClub Single-Family Rental Investor Survey.
Investors who own at least one single-family investment property were eligible to respond to the LendingOne-ResiClub SFR Investor Survey, fielded between November 14 and November 26. ResiClub, our partner for the survey, is a news and research outlet dedicated to covering the U.S. housing market.
“We have found that clients have resumed making decisions after the election and focused on their acquisition strategies for 2025,” says LendingOne CEO Matthew Neisser. “They are more likely to add to their portfolio compared to last year primarily because they are bullish on rental demand, driven by a continued lack of rental inventory. As the housing market steadies and for-sale inventory returns to normal levels, we expect more favorable buying opportunities to emerge in some markets. At the same time, investors should temper expectations for outsized rent increases like 2021-22 and focus on sustainable, data-driven investment strategies to maximize long-term returns.
Topline Findings
1. Investor Sentiment and Intent
Purchase Intent:
76% of single-family investors plan to buy at least one property in 2025.
Sale Intent:
33% of single-family investors plan to sell at least one property in 2025.
Market Outlook:
87% predict strong rental demand in 2025.
76% expect positive home price appreciation in 2025.
40% expect mortgage rates to be below 6% by the end of 2025.
2. Financial Considerations
Rising Costs:
58% of investors were impacted by rising home insurance premiums.
37% identified home insurance as their biggest increased expense in 2024.
Rental Income:
84% plan to raise rents in 2025, with 40% expecting increases over 4%.
3. Regional Trends
Southeast and Southwest: These regions experienced the highest impact from rising home insurance premiums.
Investor Confidence Rises
Back when we surveyed single-family investors in July, when mortgage rates were slightly higher than today, 60% said they were either “very likely” (38%) or “somewhat likely” (22%) to buy over the next 12 months. In our latest survey, fielded late last month, 76% of single-family investors say they are either “very likely” (55%) or “somewhat likely” (21%) to buy at least one investment property in 2025. Simply put, investors are feeling a bit more confident as we approach 2025.
“The survey results highlight both the resilience and adaptability of single-family investors as they look ahead to 2025,” Matthew Neisser continued. “Strong rental demand and mild expectations for rent growth underscore the opportunities in this space, but rising costs—especially insurance—and a divided outlook on mortgage rates remind us that careful planning will be key.”
Investment Plans and Strategies
How likely single-family rental investors say they are to buy another investment property in the next 12 month
How likely single-family rental investors say they are to buy another investment property in calendar year 2025
How likely single-family rental investors say they are to sell any of their investment properties in calendar year 2025
How single-family rental investors define their primary investment strategy
Market Conditions and Trends
How single-family rental investors describe home price momentum in their primary investment market in 2024
How single-family rental investors expect home prices to shift in their primary rental markets in calendar year 2025
What single-family rental investors expect the average 30-year fixed mortgage rate to be at the end of 2025
Rental Demand and Pricing
How single-family rental investors describe rental demand in their primary investment markets in 2024
How single-family rental investors expect rental demand to be in their primary investment markets in 2025
How much single-family rental investors plan to raise rents in calendar year 2025
Financial Impact and Expenses
How single-family rental investors say rising home insurance premiums impacted their cash flow in 2024
Nov 20, 2024
Shifting Trends: Where Renting is Outpacing Buying
Over the past few years, U.S. housing affordability has significantly worsened. The aftermath of the Pandemic Housing Boom saw home prices soaring, mortgage rates more than doubled, and the cost of repairs, insurance, and property taxes also shot up. That’s all led to fewer people being able to afford to buy homes, and as a result, homeownership has decreased in some markets.
With higher financial barriers to buying a home, in many markets, a larger share of households have turned to renting instead. This bump in rental demand presents potential opportunities for real estate investors, particularly in metros where renting has become more prevalent.
To see which markets are more primed for investor activity, LendingOne analyzed year-over-year changes in the rental share of housing units—or “rentership”— across the 75 largest metros by population.
LendingOne’s Topline Findings:
47 of the largest 75 U.S. metros saw year-over-year growth in their rental share.
Renting remains the most popular in the most expensive housing markets, namely San Jose, Los Angeles, and New York City
The metro areas that made the biggest year-over-year rental share gains were Toledo, Cape Coral, and Minneapolis.
Top Five Metros with the Most Rentership Growth Year-Over-Year:
Toledo, OH (+8.7 percentage points)
Cape Coral-Fort Myers, FL (+8.5 percentage points)
Jacksonville, FL (+7.7 percentage points)
Minneapolis-St. Paul-Bloomington, MN-WI (+7.7 percentage points)
Portland-Vancouver-Hillsboro, OR-WA (+7.0 percentage points)
Annual Shift in the Share of Local Households that are Renters
Population Growth and Housing Trends
In general, most markets see both the number of homeowners and the number of renters increase over time as the overall population ticks up. However, if the pace of renter household formation significantly outpaces owner household formation, then that could indicate a deterioration in home affordability in that region.
Affordability Pressures in Growing Renter Households
While populations tend to grow across both renters and homeowners, when renter household formation significantly outpaces owner household formation, it signals that home affordability is deteriorating. In metros like Toledo and Cleveland, home prices have outpaced wage growth, making homeownership increasingly difficult.
In places like Jacksonville and Cape Coral, soaring home insurance premiums and condo HOA fees are pricing out many would-be buyers, causing the share of renters to rise.
Consistent Trends in High-Rental-Share Metros
Despite these shifts, the metros with the highest rental shares remain largely consistent, reflecting long-standing trends in affordability. The most expensive markets, with limited housing supply, tend to have the highest rental share. Meanwhile, more affordable areas with room for new development typically see lower rentership rates and higher homeownership.
Five metros with the largest rental share in Q3 2024:
San Jose-Sunnyvale-Santa Clara, CA (52.0%)
Los Angeles-Long Beach-Anaheim, CA (50.8%)
New York-Newark-Jersey City, NY-NJ-PA (49.1%)
San Diego-Carlsbad, CA (48.0%)
Fresno, CA (47.4%)
Five metros with the smallest rental share in Q3 2024:
Cape Coral-Fort Myers, FL (21.8%)
Charleston-North Charleston-Summerville, SC (23.7%)
Columbia, SC (24.5%)
Allentown-Bethlehem-Easton, PA-NJ (27.2%)
Detroit-Warren-Dearborn, MI (28.2%)
Share of Local Households that are Renters
Big Picture: As housing affordability conditions worsened over the past few years, the share of renting households has ticked up a bit in some markets, creating opportunities for investors.