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.

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. 

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.

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

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.