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