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.
- 33% of single-family investors plan to sell at least one property in 2025.
- 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.
- 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.
