Blog Insights

We’re talking to real estate investors all over the country and hearing the same question: “The market’s adjusting — doesn’t that mean I should wait?” It’s a fair question. After years of rapid appreciation, bidding wars and historically low rates, today’s market feels… different. Prices in some areas are flat. Interest rates are higher. Some investors are hitting pause. But at LendingOne, we believe this kind of market shift doesn’t mean danger — it means balance and in many cases opportunity for investors who know what to look for. In this article we’ll break down what a “market adjustment” really means, what the data says in mid-2025 and how smart investors are using this period to buy with more control and less competition. What Does a “Market Adjustment” Really Mean? First, let’s define terms. A market correction usually means a big decline — 10% or more in asset values. A crash is worse, like 2008. But a market adjustment is neither. It’s a natural, even healthy, rebalancing after years of rapid growth. Between 2020 and 2022 US home values rose over 40% in some areas due to historically low rates, remote work and limited inventory. That wasn’t sustainable — and today’s slower pace is more in line with long term trends. Why Adjustments Create Openings for Investors When the market cools, here’s what happens: Competition Declines Fewer casual buyers and over-leveraged investors are bidding on deals. That means: More time to analyze properties More room to negotiate price and terms Better chance of winning without overpaying. Sellers Get More Motivated Sitting on the market longer means sellers start to make concessions: Price drops Repairs Rate buydowns Closing cost credits These incentives can change your return profile — and they’re more common during market slowdowns. You Can Focus on Fundamentals In hot markets speed often wins. But in balanced or cooling markets quality wins. You can: Run thorough comps Forecast cash flow with more certainty Take your time inspecting the property Avoid buying on emotion That’s how disciplined investors build wealth — not by chasing hype, but by buying good properties at fair prices. Common Investor Misconception: “A Slower Market Means More Risk” Actually it’s the opposite. Markets that grow too fast often have hidden risks: Inflated values Short term speculation “FOMO” purchases with thin margins A slower market means better underwriting, more rational pricing and longer hold times — all good for disciplined investors. What Should Investors Be Doing Right Now? Here’s what LendingOne recommends: Stick to Your Buy Box – Know your numbers. Focus on properties that cash flow at today’s rates — not hypothetical ones. Reconnect with Off-Market Channels – Agents, wholesalers, property managers — the best deals may not be on Zillow. Get Your Financing Lined Up – The investors moving fastest are the ones with capital lined up and lending terms locked in. Don’t Confuse Caution with Paralysis – Being thoughtful is wise. But letting fear freeze you out of a good deal? That’s costly over time. Final Thought: Adjustments Are When Portfolios Are Built When everyone’s rushing in it’s hard to win. When people start pulling back — that’s when long term investors get serious. This isn’t 2008. It’s not even 2020. It’s 2025 — and the market is just finding its footing after several crazy years. If you’ve been waiting for the market to “normalize” good news: It already has. What you do next depends on whether you see that as a threat — or a window. Want to Talk About a Deal in Today’s Market? We can help. → Talk to a LendingOne Advisor today about market trends, current loan options and how to take advantage of today’s market with the right financing strategy. Let’s make the adjustment work for you.

Let’s not beat around the bush — financing real estate in 2025 is more expensive than it has been in years. As of late May, the average 30-year fixed mortgage rate is 6.86% and many investors are wondering if deals can still work. At LendingOne, we hear it all the time: “Rates are too high — I’m just going to wait until they come down.” But waiting on rates — just like waiting on prices — has real risks. The truth is, higher rates don’t eliminate opportunity. They reshape it. Let’s break down what’s going on with rates, why this market still works for smart investors and how to structure deals that make sense at today’s rates. What’s Really Going On With Rates? As of May 23, 2025: The average 30-year fixed mortgage rate is 6.86% 15-year fixed is averaging 6.13% 5/1 ARMs are sitting at 6.28% These rates are way above the super low rates of 2020–2021. But they’re also far below historical highs. For context: In the 1980s, mortgage rates were over 16% Between 2000–2010, rates averaged 6.3% From a 50-year historical view, today’s rates are close to the long-term average So this is normal — and investors who learn to navigate this will have an edge. Why High Rates Aren’t a Deal Killer Real estate investing isn’t about getting the lowest rate — it’s about getting the right deal that works at today’s terms. Here’s how smart investors are approaching it: They’re Buying Based on Cash Flow — Not Rate Alone Let’s say you buy a rental property at 6.9% interest and it still cash flows. Would it be nice to finance that at 5.5% instead? Of course. But if the deal works now — it’s already a good deal. When rates drop later (and they will) you can refi. But the cash flow and equity you’re building in the meantime doesn’t wait. Smart investors lock in a deal they like and refi later if/when rates improve. They’re Using Creative Financing Structures Many LendingOne borrowers are: Choosing interest-only loans to reduce initial payments during renovations of fix and flips. Using the BRRRR strategy to lock in short-term bridge loans to then refinance later into a long-term hold.  Lock in now with current rates and refinance later when rates drop  These structures mitigate the impact of high rates — especially for investors with defined exit strategies. They’re Negotiating More Aggressively High rates mean fewer buyers, which often means more motivated sellers. According to Redfin: 44% of home sellers offered concessions in Q1 2025 Days on market has risen to 40+ days on average, giving buyers more leverage  This creates room for: Price reductions Seller credits (rate buydowns, repair credits, etc.) Favorable terms in off-market deals So while rates may be higher, the total deal structure can actually be more favorable. Real-World Scenario Let’s say you’re buying a multifamily property listed at $650,000. At a 6.9% interest rate on a 30-year loan, your monthly principal and interest is about $4,285. That sounds high — until you see: The gross monthly rent is $7,800 You negotiate $10,000 in seller concessions You plan to refi in 18 months if rates fall to the projected 6.0%–6.2% By year two, your effective cost basis may be significantly reduced — and you’ll already have built equity, collected rent and improved the property value. When you do this: If rates drop,  stay flat or rise slightly, you’re still not investing. And in the meantime, you’ve lost potential rental income, appreciation and deal opportunities. Waiting for the “perfect” rate often means missing the best deals. How to Invest at Today’s Rates We recommend to LendingOne clients: Underwrite conservatively. Run numbers at current (or slightly higher) rates to stress-test the deal. Prioritize cash-flowing assets. Passive appreciation is uncertain. Income pays the bills. Use bridge or interest-only options when appropriate. Especially helpful for value-add and fix-and-flip projects. Have an exit plan. If you plan to refi, know when and under what conditions you’ll do it. Talk to a lender early. Get clarity on loan terms, amortization schedule and cash requirements — so you can move fast when a deal appears. Final Thought: Rates Are Just One Variable It’s easy to get fixated on rates. They’re headline-grabbing and easy to compare year over year. But the best investors see the big picture: Cash flow Equity gain Market growth Negotiation leverage Long-term wealth creation Rates matter. But they don’t determine success — your strategy does. Want to See if a Deal Still Works at Today’s Rates? We’ll help you analyze it. → Talk to a LendingOne Advisor today. We’ll run through financing scenarios, compare structures and help you decide if now is the right time to move — even with rates where they are. Because waiting for the “perfect” conditions? That’s rarely how great portfolios are built.

We’ve heard it more often in 2025 than any time in recent memory: “I’m just going to wait for prices to drop a little more before I buy.” And we get it. Prices skyrocketed during the pandemic boom. Now that appreciation is slowing — or even reversing slightly in some markets — it’s easy to assume a bigger correction is just around the corner. But at LendingOne, we’ve helped thousands of investors buy through every kind of market cycle. And here’s what we can say with certainty: Trying to time the bottom rarely works. Smart investors buy the right deal — not wait for the perfect market. In this article, we’ll break down what’s really happening with pricing, what the experts are saying, and why waiting too long could cost you more than it saves. What the Market Data Says About Prices in 2025 Let’s get to the numbers. According to Redfin’s latest housing forecast: U.S. prices will fall by only ~1% by Q4 2025 The median sale price in April 2025 was $438,108, up 1.3% year-over-year Meanwhile, Case-Shiller’s national index showed home values up 3.4% year-over-year as of March 2025. And the National Association of REALTORS® forecasts home price growth of roughly 2% for full-year 2025.(Source: NAR Housing Forecast 2025) In simple terms? Yes, some markets are cooling. But prices aren’t crashing. Most experts predict a plateau or gentle correction — not a big drop. What If Prices Do Drop? Let’s Do the Math Let’s say you wait, and prices fall 2–3% later this year. If a property you’re looking at now costs $400,000, that means you could buy it later for $388,000 — a $12,000 discount. That sounds good — until you factor in what you’re losing by waiting: You’re missing out on rental income. That $400,000 property might generate $2,500/month in rent. Waiting six months = $15,000 in lost income. You’ll face more competition later. If rates drop or prices start going up again, more buyers will jump in — and prices will go up. You’re still exposed to inflation. Your cash loses value sitting idle. Even modest 3–4% inflation eats into your buying power. The property you want might not be available. There’s no guarantee the “right” deal will still be there. In short: a small discount doesn’t always beat the opportunity cost of inaction. What Smart Investors Know About “Market Timing” Here’s a truth that experienced investors understand: You don’t wait to buy real estate — you buy real estate and wait. Why? Because long-term value creation in real estate comes from: Equity buildup through loan amortization Market appreciation over time Rising rents and tax advantages Creative improvements that boost property value None of that happens while you’re sitting on the sidelines. Real Estate Is Still Undersupplied — Even in a Slower Market One reason prices haven’t dropped more is supply. The U.S. housing market is still millions of units short of what’s needed to meet demand, according to data from Freddie Mac and the National Association of Home Builders. As of April 2025: Inventory of existing homes rose to 1.45 million units — up from the extreme lows of 2021–2022, but still short of a balanced market. New home construction has slowed due to rising costs and builder caution, adding further pressure to supply. This imbalance is what keeps prices from crashing — and why many investors are still buying today, even at current price points. What You Should Do Instead of Waiting We’re not saying “buy anything right now.” But we are saying this: If you find a property that: Cash flows at today’s interest rates Is in a location with strong rental demand and economic growth Fits your investment criteria for hold time, risk, and equity potential …then it’s worth serious consideration — regardless of what might happen to prices in six months. At LendingOne, we’re seeing our most experienced clients do the following: Buying on Cash Flow, Not Hype They’re not hoping for 3-4% annual appreciation — they’re buying properties that cash flow from day one. Using Adjustable or Bridge Loans to Stay Flexible Some are using shorter-term loans to capture equity now, with the option to refinance later if rates or prices move. Negotiating Harder With less competition, there’s more room to ask for concessions, credits or better terms — especially on fixer-uppers or longer-DOM properties. Final Thought: “Perfect Timing” is a Myth It’s natural to want the best deal. But the truth is, no one — not even the best analysts — can consistently call the bottom of any market. What matters more than buying at the lowest price is buying the right property, at the right terms, with a plan to hold and operate it profitably. The right time to buy isn’t when everything feels safe. It’s when you’re prepared, the numbers work and you’re ready to move. Talk to LendingOne About Your Purchase Plan Still feeling cautious? That’s normal. We’d be happy to walk you through financing options based on today’s rates — and help you model how different price and rent assumptions impact your returns. → Contact LendingOne Today

Economic uncertainty is back in the headlines. With new tariffs, global tensions, stubborn inflation and talk of a slowdown, it’s no surprise some real estate investors are getting cold feet. You might be asking: “Should I really be investing in real estate right now when the overall economy feels shaky?” It’s a fair question — and one we’re hearing more often in 2025. At LendingOne we believe the answer isn’t a hard yes or no. It’s about perspective, planning and understanding why real estate behaves differently than many other asset classes during economic shifts. Here’s why smart investors aren’t backing down — and how they’re adjusting to stay ahead. The Big Picture: Slower, Not Stopped Let’s look at the numbers. The US economy is growing — just not as fast. According to the Bureau of Economic Analysis (BEA) Q1 2025 GDP was 2.2%, below expectations but still good. Unemployment is at 4.0% and consumer spending is holding even with tighter budgets. But investor sentiment is being spooked by: New tariffs on Chinese goods which have increased costs for builders and developers. Concerns about a consumer slowdown in Q3. Global instability which adds uncertainty to supply chains and equity markets. But major real estate markets — residential and small to mid-size commercial — are stable. Why Real Estate Performs Differently During Economic Volatility Real estate doesn’t react to every economic twitch like equities or crypto. Here’s why: Real Estate is a Hard Asset Real estate is physical. It provides shelter, utility and income — all things people need regardless of market cycles. In uncertain times many investors rotate into hard assets to hedge against currency shifts, inflation or market volatility. Real Estate Gives You Control  You can’t control the Fed’s interest rates. But as a real estate investor you can: Set your own rents Renovate to increase value Refinance when rates drop That kind of control is priceless in uncertain times. Real Estate Cash Flows Dividend stocks pay out a few times a year. Crypto doesn’t cash flow at all. But rental properties? They cash flow every month — and often increase with inflation. According to Zillow, US median rent prices are up 3.2% year over year as of April 2025 — slower than the pandemic peak but still growing. In most areas, rents are holding strong even as home prices level off. What Investors Are Worried About — And How to Respond Objection 1: “Tariffs are increasing construction and material costs.” Reality: That’s true — especially for new builds. But this also tightens future inventory which can increase the value of existing properties. Investors focused on value-add renovations or turnkey rentals may actually benefit. Pro Tip: If you’re building or renovating, lock in pricing with contractors and suppliers early. Also, look at areas where new supply is already constrained — these tend to hold value better. Objection 2: “The economy will go into recession.” Reality: A slowdown isn’t a crash. And historically real estate has often remained resilient — or even appreciated — during mild recessions especially in undersupplied areas. Did You Know? During the 2001 recession US home prices still rose 6.6% nationally.  Even during the 2020 pandemic prices surged as demand outpaced supply. Today housing supply is still below long term averages so even a small drop in demand won’t collapse the market. Objection 3: “My other investments are down — I don’t want to overextend.” Reality: Diversifying into real estate may actually help stabilize your overall portfolio. The correlation between stock market returns and housing is low — they don’t tend to move together. When stocks zig, real estate may zag. Consider: Short- or mid-term rental properties in cash flowing markets. These can produce immediate income while allowing for appreciation over time. What Smart Investors Are Doing in 2025 At LendingOne we’re seeing three key behaviors from experienced investors in this economic climate: They’re Stress Testing Their Deals Investors are modeling conservative rent assumptions, factoring in possible price drops, and underwriting to higher interest rates — and still moving forward when the numbers work. They’re Building Liquidity Having reserves doesn’t mean you’re scared. It means you’re ready. The investors who move fastest when a deal appears are the ones who have access to capital, flexible terms and pre-approved financing. They’re Playing the Long Game Economic cycles come and go. The investors who succeed think in 3-, 5- or 10-year horizons. They know short term turbulence doesn’t stop long term equity growth, rental demand or portfolio expansion. Practical Advice for Investors Feeling Economic Pressure Here are a few things you can do today: Run deal analysis at higher rates and lower rents. If it still works — it’s probably a good move. Focus on local economic data, not just national headlines. Some markets are still growing jobs and population even if national sentiment is negative. Explore bridge financing or shorter loan terms. This can help you stay flexible as the macro picture evolves. Work with lenders who know how to navigate cycles. (That’s us.) Final Thought: Chaos Doesn’t Cancel Opportunity — It Reshapes It Every investor remembers moments when fear ruled the market — and when those who acted early came out ahead. Yes, the economy feels uncertain. But when you zoom in on the data, fundamentals and trends in housing the story becomes clearer: Real estate is one of the most controllable, durable and income generating assets you can own — even when the economy feels shaky. If you’re feeling uncertain but want to keep looking at opportunities let’s talk. Talk to a LendingOne Advisor about structuring a financing plan that works in this environment. Whether you’re buying your first deal or scaling your portfolio we’re here to help you invest with clarity — not fear.

Uncertainty is part of every real estate cycle — but in 2025, it feels especially personal. Investors aren’t just watching interest rates or price charts; they’re reading headlines about volatility, inflation, and market corrections. If you’ve looked at a deal recently and thought, “I’m not sure if this is the right time”, you’re not alone. But stepping back too far can mean missing the window where smart investors find their edge. At LendingOne, we believe today’s market doesn’t call for inaction — it calls for better strategy. In this article, we’ll break down what’s really happening, why instability doesn’t necessarily mean risk, and how to invest confidently even when conditions feel uncertain. The Market Has Shifted — But It Hasn’t Collapsed The term “unstable” often stems from comparison. If you’re comparing 2025 to the overheated pandemic-era market of 2020–2022, yes — things feel different. But different doesn’t mean broken. As of April 2025: The median existing home price in the U.S. was $414,000, up 1.8% year-over-year, according to the National Association of REALTORS® (NAR). Housing inventory rose to 1.45 million homes, a 20.8% increase compared to last year — the highest level in nearly five years. Existing-home sales are running at a pace of 4.00 million, which is about 75% of pre-pandemic levels — steady, not plummeting. Meanwhile, the Case-Shiller Home Price Index — considered a gold standard for U.S. price trends — reported that national prices were up 3.4% year-over-year in March 2025.(Source: S&P Dow Jones Indices) So what’s really going on? The market is no longer in frenzy mode — and that’s a good thing. Volatility ≠ Risk: Why Stabilization Creates Opportunity Let’s be honest: 2021’s 20%+ price spikes were unsustainable. The correction we’re seeing now — slower sales, more days on market, and leveling prices — isn’t a warning sign. It’s a return to fundamentals. In fact, several factors suggest a more balanced, investor-friendly market is emerging: More supply means more choice. Investors can now find deals, negotiate terms, and avoid bidding wars. Price growth is normalizing. No bubble behavior — just steady, inflation-aligned appreciation. Rent growth remains strong in many metro areas, helping support investment properties even if appreciation slows. Here’s the truth: a volatile market shakes out the noise. When casual buyers step back and overleveraged players exit, savvy investors step in. What Are Smart Investors Doing Right Now? At LendingOne, we’re seeing the most successful clients take the following approaches: They’re Adjusting Expectations — Not Sitting Still No one’s expecting 15% year-over-year gains anymore. But smart investors don’t need a bull market to make money — they need good fundamentals. They’re buying properties with positive cash flow They’re building equity through rehab and repositioning They’re evaluating deals conservatively — with real-world rent and interest rate assumptions They’re Leaning Into Data, Not Headlines While media narratives often focus on “cooling” or “correction,” experienced investors look closer. Redfin reports that 44% of home sellers offered concessions to buyers in Q1 2025 — a strong indicator that it’s becoming a buyer’s market. They’re watching: Inventory trends in local markets Rent vs. price ratios Economic growth and employment in target metros They’re Using Flexible Financing With interest rates fluctuating, finding flexible financing structures matter now more than ever. Many are: Using interest-only loans for fix and flips Structuring Fix to Rent (BRRRR) strategies allowing them to capture equity now and refinance later into a long-term hold. Locking in rates now, with plans to refinance if/when rates fall Common Misconceptions About Instability Let’s debunk a few myths: Prices are about to crash. No major forecast shows a crash. Even Redfin — one of the more conservative analysts — only projects a ~1% price dip by end of 2025. There are no good deals. Actually, we’re seeing more negotiable deals than in the last 3 years — especially for value-add projects or properties with cosmetic issues. It’s better to wait. Maybe — but not always. Waiting means: Paying rent or missing rental income Competing with more buyers later if rates drop Missing out on unique deals available now Real Talk: What We’d Tell a Cautious Investor If you’re holding back because the market feels uncertain, we get it. It’s smart to be cautious. But here’s what we’ve seen after working with thousands of investors: “Uncertainty often leads to opportunity. The best deals aren’t found when everyone’s feeling confident — they’re made when others hesitate.” 2025 isn’t perfect. But you don’t need perfect conditions to make money in real estate. You need: Realistic expectations A clear plan The right partners (on the ground and on the financing side) What Can You Do Today? Not ready to buy tomorrow? That’s fine. But you can still prepare: Run the numbers on a few sample deals at today’s rates Talk to local brokers about inventory Speak to a LendingOne loan advisor about flexible loan options Identify 2–3 target markets and start tracking DOM, pricing and rental comps Final Thought: Controlled Uncertainty Is Your Friend The investors who will win in 2025 aren’t the ones waiting for the dust to settle. They’re the ones who can see through the fog — and move forward with a plan. If you want help making sense of the market or need a second set of eyes on a deal, our team is here to help. LendingOne works with thousands of real estate investors across the country and knows how to lend — and lend smart — in any market. Talk to a LendingOne Advisor today about opportunities in your market. We’ll help you assess risk, run projections and build a financing plan for this environment.

At LendingOne, we work with real estate investors every day—from early-stage investors  to seasoned pros with large portfolios. In 2025, investors are navigating a different environment than the boom years of the early 2020s. With economic signals mixed and uncertainty in the air, it’s no surprise that investors are asking smart, cautious questions before making their next move. The good news? Many of these questions can be addressed with the right strategy, supporting data, and flexible financing. Below, we break down the five most common themes we’re hearing—and how today’s market shifts can be turned into opportunities. Question 1: Is the Market Too Unstable to Invest Right Now? Answer:  The market looks different than it did during the surge of 2021 and 2022. Volatility has replaced predictability—but that doesn’t mean it’s time to sit on the sidelines. In fact, volatility often creates opportunity. According to the National Association of REALTORS® (NAR), pending home sales began to recover in early 2025, with existing-home sales projected to rise nearly 9% this year. This rebound signals renewed confidence from buyers and sellers. And while home price growth has slowed, it hasn’t reversed. Redfin reports that U.S. home prices are up ~1% year-over-year as of April 2025. That’s a sign of stability, not collapse. For savvy investors, a transitional market often means better deals. With fewer buyers competing, there’s more room to negotiate and more power at the table. In fact, nearly 45% of home sellers in Q1 2025 offered concessions like closing cost assistance or rate buydowns. Opportunity: Investors who act strategically while others hesitate can access better pricing, less competition, and improved deal terms.  See how investors are protecting themselves from broader economic shifts. Read the full article on how to navigate market instability. Question 2: Can Real Estate Still Protect Me from Economic Uncertainty? Answer: It’s true that tariffs and global economic uncertainty have increased material costs and investor caution. For example, the National Association of Home Builders estimates that recent tariffs have added around $9,200 to the cost of a new home. But here’s the bigger picture: real estate is historically one of the strongest hedges against volatility. Unlike equities or crypto, real estate is a tangible, income-producing asset that you can control. You decide how it’s financed, how it’s improved, and when it’s sold. More importantly, today’s housing fundamentals are far stronger than they were in 2008. According to ATTOM, 47% of U.S. mortgage holders are now “equity rich,” and just 2.5% are underwater. That gives the market a cushion and reduces systemic risk. Opportunity: In uncertain times, real estate allows for strategic, controllable investing—especially when paired with conservative underwriting and flexible loan options. Want to know how experienced investors navigate volatility? Read our full breakdown about the economy and the housing market. Question 3: Should I Wait for Prices to Drop Before I Buy?  Answer: Many investors are wondering if prices will drop further—and whether it’s smarter to wait. But most indicators point to a plateau, not a plunge. NAR forecasts home prices to rise around 2% in 2025, while Redfin expects a modest 1% national decline. Meanwhile, Freddie Mac estimates the U.S. remains short 4.5 million housing units, meaning supply-side pressure is still driving long-term demand. Trying to time the market perfectly is difficult—often impossible. And while you wait, you could miss out on cash flow, appreciation, or favorable inventory. Opportunity: If the numbers work today—even with current prices—it’s worth moving. Investors who act based on cash flow and long-term goals, not predictions, tend to outperform those who sit on the sidelines. Here’s why trying to time the market rarely pays off. Explore our take on price timing and investor strategy. Question 4: Are Interest Rates Too High to Make a Deal Work? Answer: While rates are higher than a few years ago, most experts predict we’ll see rates drop later in 2025, potentially opening the door for refinancing. As of May 2025, the average 30-year fixed mortgage sits around 6.7%. But that’s not historically extreme. In fact, the 50-year average is 7.7%. In the meantime, smart investors are finding ways to make deals work at today’s rates. One reason: seller flexibility. Nearly 44% of sellers are offering concessions like rate buydowns or closing cost credits, giving buyers more room to improve loan terms. Our clients are also leveraging: Fast closings to help compete and win deals  No income verification for a smoother approval process  Flexible terms tailored to each investment strategy  High leverage options to help with scalability Opportunity: Rather than waiting for rates to drop, focus on building deals that cash flow now—with financing that adapts to your strategy. Rates are just one piece of the puzzle. Learn how investors are making deals pencil anyway. Read more about investing with high interest rates. Question 5: Does a Market Correction Mean I Should Wait? Answer: Some investors are concerned about “market corrections”—but not all pullbacks are bad. After years of record growth, stabilization is a natural and necessary adjustment. Consider this: the median U.S. home price rose over 40% between 2015 and 2024. A minor 5% pullback in overheated metros isn’t a crash—it’s normalization. Experts see the current shift as healthy for the market. A slower pace of growth: Reduces speculation Gives buyers more negotiating power Encourages long-term thinking We’re seeing prepared investors step in while others wait, acquiring strong assets at prices below peak levels and using long-term financing to hold or reposition them. Opportunity: A cooler market isn’t a warning—it’s an opening to invest with discipline, structure, and a focus on sustainability. Not all corrections are red flags. See why normalization could work in your favor. Read more about market corrections and what they mean for investors. Conclusion: Opportunity in Every Market Today’s market isn’t without challenges—but it’s far from uninvestable. In fact, our experienced clients see this environment as ideal: more motivated sellers, less competition, and plenty of ways to structure a deal that works. Every question above is valid. But when you dig deeper, the data shows a market that’s correcting—not collapsing—and a lending landscape built to support investors who think long term. At LendingOne, we’re here to help you evaluate the landscape, structure financing around your goals, and move forward with clarity and confidence.

Rental vacancy levels vary significantly across U.S. metros as local supply pipelines, population growth, and other market dynamics pull vacancy rates in different directions. In some markets, a flood of new units, ushered in during the Pandemic Boom building frenzy, has outpaced demand, pushing vacancies higher. In other markets, limited new construction and steady renter demand are keeping vacancies low and rents competitive. Why Vacancy Rates Matter for DSCR Loans DSCR loans—designed for financing income-producing rental properties—depend on one key metric: how well the property’s cash flow covers its debt obligations. For this reason, rental vacancy rates should be a key indicator for real estate investors if they are considering this type of loan. In tightening markets, vacancy rates are falling and rental income is strengthening, creating a more favorable environment for these loans. In softening markets, rising vacancies can limit cash flow and make it harder to meet loan requirements. 🏢 Tip from a DSCR lender: Lower vacancy means stronger rental performance, which improves your debt service coverage ratio—an essential qualifier for DSCR financing. Where Vacancies Are Rising or Falling Most LendingOne analyzed the latest U.S. Census Bureau data to identify the metros where rental vacancies are rising—and where they’re falling—to help investors assess where DSCR loans may be most viable. Here are our top-line findings: The U.S. rental vacancy rate rose to 7.1% in Q1 2025, up from 6.6% a year earlier—marking the highest level in six years. Among the largest 50 U.S. metros, Milwaukee, WI and Kansas City, MO saw the steepest year-over-year vacancy increases (+9.0 and +5.8 points, respectively). Metros with the lowest rental vacancy rates in Q1 2025 include Providence, Richmond, and California markets like Riverside, San Diego, San Jose, and Los Angeles—all below 4%. U.S. Rental Vacancy Rates The U.S. rental vacancy rate reached 7.1% in Q1 2025, marking its highest level since Q3 2018—perhaps the aftermath of Pandemic Boom-era construction activity, shifting migration patterns, and economic conditions affecting renters’ affordability. 📉 For investors, this trend suggests a more competitive rental market, potentially leading to lower rents and increased incentives to attract tenants. However, opportunities may exist in regions with stable demand and limited new supply. Rental Vacancy Rates for America’s 50 Largest Metro Areas   These are the 5 metros with the highest vacancy rates: Milwaukee-Waukesha, WI: 14.5% Kansas City, MO-KS: 12.5% Birmingham, AL: 12.3% Tampa-St. Petersburg-Clearwater, FL: 11.9% Houston-Pasadena-The Woodlands, TX: 11.6% These are the 5 metros with the lowest vacancy rates: Providence-Warwick, RI-MA: 2.2% Riverside-San Bernardino-Ontario, CA: 3.4% San Diego-Chula Vista-Carlsbad, CA: 3.7% Richmond, VA: 3.8% San Jose-Sunnyvale-Santa Clara, CA: 3.8% Beyond this snapshot of vacancy rates, it’s critical to examine where vacancies are rising and falling across the country to understand the trajectory of rental supply and demand. In markets like San Francisco or New York City, vacancy levels are likely to remain lower than the national average due to sustained demand driven by limited housing supply, high population density, and a robust job market. Therefore, investors need to adopt a dynamic view of vacancy trends to assess long-term cash flow potential and risk, ultimately determining if the market is ripe for DSCR loan opportunities. ✅ Investors seeking DSCR loans may benefit from investing in low-vacancy markets with stable demand and limited new construction. Year-over-year rental vacancy rate shifts These are the 5 metros with the largest vacancy increases: Milwaukee-Waukesha, WI: +9.0% Kansas City, MO-KS: +5.8% Grand Rapids-Wyoming-Kentwood, MI: +5.6% Sacramento-Roseville-Folsom, CA: +5.3% Hartford-West Hartford-East Hartford, CT: +5.1% These are the 5 metros with the largest vacancy decreases: Richmond, VA: -4.6% Las Vegas-Henderson-North Las Vegas, NV: -3.7% Providence-Warwick, RI-MA: -3.5% Raleigh-Cary, NC: -3.2% Virginia Beach-Chesapeake-Norfolk, VA-NC: -3.2% 📌 Metros with falling vacancy rates, like Richmond and Las Vegas, indicate stronger rental demand—ideal for DSCR lenders and real estate investors looking to optimize financing. Investor Takeaway: Align Vacancy Trends With DSCR Strategy If vacancy rates continue to rise in high-supply metros, it may pose challenges for investors using DSCR loans, as weaker cash flow can affect loan eligibility. Conversely, metros with falling vacancy rates often offer: Higher rent stability Stronger DSCR coverage ratios Better conditions for securing financing with a DSCR lender Still, investors should consider other factors such as local job growth, economic resilience, and pricing trends before investing. Final Word for DSCR Loan Investors Big Picture: With rental vacancy rates reaching a six-year high, investors must understand where supply and demand are shifting to evaluate DSCR loan viability. Markets with rising vacancies present more risk. Markets with tightening vacancies create favorable conditions for long-term, cash-flowing investments. Whether you’re a new or experienced investor, aligning market data with your DSCR strategy can make or break your next deal.

As housing affordability challenges persist and housing inventory remains tight, regional new construction trends offer a window into where there are still investment opportunities for fix and flippers. Rising permit activity points to strong demand and price appreciation, which is great for fix-and-flip real estate investors. However, supply-constrained markets in the Northeast can also offer unique, high-ROI opportunities despite low permit activity. That’s why LendingOne analyzed monthly housing permit data from the U.S. Census Bureau’s Building Permit Survey to see where single-family permit activity is ramping up—and where it is pulling back. These are our key findings: U.S. Housing Permit Activity: The 2025 Outlook March U.S. single-family housing permit activity remains above pre-pandemic levels, with permits in March 2025 up 21% from March 2019, and slightly below (-0.8%) March 2024 levels. However, U.S. single-family housing permit activity has still fallen -24% since 2021. Primary markets in the South continue to see the most single-family permits overall, but secondary markets across the Southeast, as well as some of the largest U.S. metros, have seen permit activity ramp up significantly over the last year. ✅ Fix and Flip Insight: Rising permits typically signal strong market interest and price appreciation, giving flippers a chance to ride momentum—especially in growing Southeast cities. Little Rock, Arkansas, saw a 175% year-over-year growth in single-family permit activity—the highest of any U.S. metro that issued at least 200 single-family permits in March 2025. U.S. Housing Permit Activity: The 2025 Outlook While new construction remains significantly below March 2021 levels, the latest data shows that even in the face of strained affordability, permit activity has stayed resilient. That being said, trends vary a lot by market. Top 10 U.S. Metros Where Permits Are Growing Fastest Among the housing markets that issued at least 200 single-family housing permits in March 2025, these cities led the nation in year-over-year growth: Little Rock, AR: +175% Jacksonville, NC: +54.9% Savannah, GA: +48.5% Winston-Salem, NC: +46% Oklahoma City, OK: +39.5% New York-Newark-Jersey City, NY-NJ: +38.6% Hickory, NC: +30.9% Birmingham, AL: +30.8% Greensboro-High Point, NC: +30.5% Knoxville, TN: +26% 🛠️ Fix and Flippers should take note of these fast-growing areas. Increased permits often correlate with buyer demand and neighborhood revitalization—both favorable conditions for profitable flips. Markets With the Biggest Permit Declines On the flip side, these metros saw the sharpest year-over-year declines in permit activity: Deltona-Daytona Beach-Ormond Beach, FL: -38.0% Jacksonville, FL: -37.3% Lakeland-Winter Haven, FL: -31.3% Salt Lake City-Murray, UT: -28.4% Punta Gorda, FL: -23.1% Virginia Beach-Chesapeake-Norfolk, VA-NC: -21.7% Hilton Head Island-Bluffton-Port Royal, SC: -20.6% Atlanta-Sandy Springs-Roswell, GA: -20.1% Washington-Arlington-Alexandria, DC-VA-MD-WV: -20.0% North Port-Bradenton-Sarasota, FL: -18.2% 🏘️ Fix and flip investors in these markets may benefit from less new construction competition, potentially increasing resale opportunities for rehabbed homes. Southern Secondary Markets Lead in 2025 Secondary markets in the South are taking center stage in 2025, with four North Carolina metros landing in the top 10 for biggest year-over-year permitting increases. These smaller cities often offer lower acquisition costs and growing populations—two crucial ingredients for successful fix and flip projects. Why Fix and Flippers Should Watch Permit Trends Home flippers should pay attention to housing permits as they provide valuable insights into future market conditions. An increase in single-family permits typically means more homes will be built, which could increase local inventory competition—something flippers want to keep an eye on when selling. For instance, when and where needed, builders aren’t afraid to roll out big incentives to move product. Tracking permit trends can also help fix and flip investors: Identify emerging neighborhoods Avoid areas at risk of overbuilding Spot rising renovation permit activity (a sign of investor competition) 📊 Overall, monitoring permits helps flippers make smarter decisions about timing, pricing, and location. Why Low-Permit Markets Can Be Gold for Flippers Some markets, particularly across the Northeast, have strict development regulations or simply lack space to build new homes, suppressing permit activity levels. This paired with strong demand means flippers in these markets have a particular edge. According to LendingOne’s analysis, while competition is high, these are the types of markets where flippers are seeing the highest ROI right now. Year-Over-Year Changed in Single Family Housing Permits By Metro High-Volume Markets: Where Builders Are Active In terms of volume, these metros issued the most permits for single-family homes in March 2025: Houston, TX: 4,709 Dallas, TX: 3,810 Phoenix, AZ: 2,372 Atlanta, GA: 2,130 Charlotte, NC: 1,622 Texas markets remain leaders in new construction, despite rising resale inventory and slight price corrections. For example, even with Houston home prices sitting -3.8% below their 2022 peak, according to the Zillow Home Value Index, permit activity still ticked up +0.2% year-over-year. 🔍 For flippers, this means keeping a close eye on how builders are pricing and positioning their homes. Single Family Housing Permits Authorized in March 2025 Fix and Flip Opportunities in Dense Coastal Cities Notably, both New York City and Los Angeles have seen a substantial jump in single-family permitting, indicating opportunities to buy, renovate, and resell homes in areas where new construction has traditionally been limited. Year-Over-Year Growth in Single Family Permit Activity These markets often come with high acquisition costs but can also offer big returns if flippers find the right property in the right neighborhood. The Bottom Line for Fix and Flippers in 2025 Big picture: While single-family permit activity is no longer booming like it was during the Pandemic Housing Boom, it’s still holding steady on a national basis. Fix-and-flip investors who are competing directly with homebuilders—meaning they’re selling a similar product to a similar buyer in the same area—will need to stay on their toes, given how constrained affordability is in today’s housing market.

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.