Most Real Estate Investors are Buying in The Next 12 Months
David Garner
David GarnerU.S. Single-Family Rental Investor Survey Q2 2025: Navigating Market Sentiment and Opportunities
For real estate investors, understanding the pulse of the market is critical. What are other investors thinking? What challenges are they facing? And what are their plans for the future? A recent survey of single-family rental (SFR) investors provides valuable insights into these questions for Q2 2025.
This article breaks down the key findings from this investor survey. We will explore sentiment on buying, selling, market momentum, rental demand, and rising costs. This deep dive will help you refine your own investment strategies for the year ahead.
Key Takeaways: Investor Sentiment in Q2 2025
- High Buying Intent: Over half of SFR investors (52%) are very likely to buy in the next 12 months.
- Low Selling Intent: Most investors (70%) are unlikely to sell in the next 12 months, indicating a hold strategy.
- Strong Market Momentum: Investors largely perceive home price momentum and rental demand as “strong” or “somewhat strong” across all regions.
- Rising Costs: Property taxes and insurance premiums are the biggest concerns for cash flow, with mortgage interest rates also a significant factor.
- Elevated Mortgage Rates: Investors expect 30-year fixed mortgage rates to remain high, with nearly 60% anticipating rates above 6.5%.
- Planned Rent Increases: A majority of investors (83%) plan to raise rents by 1% or more in the next 12 months.
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Investor Intent: Buying vs. Selling
Understanding how many investors plan to buy or sell helps gauge market supply and demand from the investor side. The Q2 2025 survey reveals a clear preference for buying over selling.
Likelihood of Buying in the Next 12 Months (U.S. Total)
| Likelihood | Q2 2024 (%) | Q4 2024 (%) | Q2 2025 (%) |
|---|---|---|---|
| Very Likely | 38.5% | 55.2% | 51.8% |
| Likely | 22.1% | 21.3% | 27.6% |
| Somewhat Unlikely | 15.4% | 9.8% | 14.6% |
| Very Unlikely | 24.1% | 13.7% | 6.0% |
| Total Likely/Very Likely | 60.6% | 76.5% | 79.4% |
Source: LendingOne-ResiClub SFR Investor Survey Q2 2025
The trend shows a consistent increase in the percentage of investors who are “Likely” or “Very Likely” to buy, reaching nearly 80% in Q2 2025. This indicates strong and growing confidence in acquiring new properties.
Likelihood of Buying in the Next 12 Months by Region (Q2 2025)
| Region | Very Likely | Somewhat Likely | Somewhat Unlikely | Very Unlikely |
|---|---|---|---|---|
| Northeast | 50% | 28% | 13% | 9% |
| Midwest | 54% | 22% | 19% | 6% |
| Southwest | 61% | 22% | 13% | 4% |
| Southeast | 54% | 31% | 12% | 3% |
| West | 25% | 38% | 19% | 19% |
| U.S. Total | 52% | 28% | 15% | 6% |
Source: LendingOne-ResiClub SFR Investor Survey Q2 2025
The Southwest shows the highest “Very Likely” to buy sentiment, while the West is comparatively less enthusiastic about new acquisitions.
Related: The Top 7 U.S. Real Estate Markets to buy Rental Properties in 2025
Likelihood of Selling in the Next 12 Months (U.S. Total)
| Quarter | Very Likely | Somewhat Likely | Somewhat Unlikely | Very Unlikely |
|---|---|---|---|---|
| 2024 Q2 | 20.5% | 18.5% | 13.9% | 47.2% |
| 2024 Q4 | 18% | 15.3% | 16.9% | 49.7% |
| 2025 Q2 | 22.6% | 9% | 19.6% | 48.7% |
| Total Likely/Very Likely (Q2 2025) | 31.6% |
Source: LendingOne-ResiClub SFR Investor Survey Q2 2025 (Data from uploaded images)
Likelihood of Selling in the Next 12 Months by Region (Q2 2025)
| Region | Very Likely | Somewhat Likely | Somewhat Unlikely | Very Unlikely |
|---|---|---|---|---|
| Northeast | 19% | 9% | 19% | 53% |
| Midwest | 17% | 6% | 22% | 56% |
| Southwest | 26% | 13% | 13% | 48% |
| Southeast | 27% | 11% | 20% | 42% |
| West | 25% | 6% | 19% | 50% |
| U.S. Total | 23% | 9% | 20% | 49% |
Source: LendingOne-ResiClub SFR Investor Survey Q2 2025
Analysis: While there’s a slight increase in “Very Likely” to sell from Q4 2024 to Q2 2025, the overall sentiment remains heavily skewed towards holding properties. Across the U.S., 70% of investors are “Somewhat Unlikely” or “Very Unlikely” to sell. This “hold” mentality suggests investors are seeing long-term value in their current assets, which could keep existing rental supply tight. The Southeast and Southwest show a slightly higher inclination to sell compared to other regions.
Related: The Best U.S. Real Estate Markets for Foreign Nationals and Non Resident Investors in 2025
Market Momentum: Home Prices and Rental Demand
Investor sentiment on home prices and rental demand provides a forward-looking view of market health. The survey shows a generally positive outlook.
Home Price Momentum in Primary Market (Past 12 Months) by Region (Q2 2025)
| Region | Very Strong | Somewhat Strong | Somewhat Weak | Very Weak |
|---|---|---|---|---|
| Northeast | 31% | 59% | 6% | 4% |
| Midwest | 13% | 69% | 15% | 3% |
| Southwest | 26% | 61% | 13% | 0% |
| Southeast | 10% | 42% | 42% | 7% |
| West | 13% | 50% | 38% | 0% |
| U.S. Total | 13% | 51% | 31% | 6% |
Source: LendingOne-ResiClub SFR Investor Survey Q2 2025 (Data from uploaded images)
Rental Demand in Primary Market (Past 12 Months) by Region (Q2 2025)
| Region | Very Strong | Somewhat Strong | Somewhat Weak | Very Weak |
|---|---|---|---|---|
| Northeast | 47% | 47% | 6% | 0% |
| Midwest | 46% | 50% | 4% | 0% |
| Southwest | 26% | 57% | 17% | 0% |
| Southeast | 42% | 47% | 11% | 0% |
| West | 50% | 31% | 19% | 0% |
| U.S. Total | 43% | 48% | 10% | 0% |
Source: LendingOne-ResiClub SFR Investor Survey Q2 2025
Analysis: A vast majority of investors (64% U.S. Total for home price momentum, 91% U.S. Total for rental demand) describe these as “strong” or “somewhat strong.” The Northeast and Midwest show particularly high percentages of “Very Strong” or “Strong” rental demand. This widespread optimism highlights the resilience of the SFR market. High rental demand often translates to lower vacancy rates and the ability to raise rents.
Related: U.S. Real Estate Market Forecast and Expert Predictions for the Next 5 years
Future Expectations: Rental Demand, Rent Increases, and Home Prices
What investors expect for the next 12 months often shapes their current decisions. The survey reveals a consistent positive outlook across key metrics.
Expected Rental Demand in Primary Market (Next 12 Months) by Region (Q2 2025)
| Region | Very Strong | Somewhat Strong | Somewhat Weak | Very Weak |
|---|---|---|---|---|
| Northeast | 53% | 41% | 3% | 3% |
| Midwest | 46% | 48% | 6% | 0% |
| Southwest | 26% | 57% | 17% | 0% |
| Southeast | 41% | 43% | 14% | 2% |
| West | 44% | 44% | 13% | 0% |
| U.S. Total | 43% | 46% | 10% | 1% |
Source: LendingOne-ResiClub SFR Investor Survey Q2 2025
Planned Rent Increases (Next 12 Months) by Region (Q2 2025)
| Region | 7% | +4% to +6% | +1% to +3% | 0% | -1% to -3% | -4% to -6% | -7% |
|---|---|---|---|---|---|---|---|
| Northeast | 9% | 50% | 28% | — | 9% | — | 4% |
| Midwest | 11% | 33% | 43% | — | 13% | — | 0% |
| Southwest | 9% | 35% | 30% | — | 26% | — | 0% |
| Southeast | 7% | 28% | 43% | — | 19% | 3% | 0% |
| West | 19% | 25% | 44% | — | 6% | 6% | 0% |
| U.S. Total | 10% | 34% | 39% | 0% | 16% | 1% | 0% |
Source: LendingOne-ResiClub SFR Investor Survey Q2 2025
Analysis: A significant majority of investors (89% U.S. Total) expect continued strong rental demand. Similarly, 83% of investors plan to increase rents by 1% or more, with 44% planning increases of 4% or more. This indicates a strong belief that the positive trends of the past year will continue. Investors are clearly confident in their ability to generate income and build equity in the current market. The West region shows the highest percentage of investors planning significant rent increases (7% or +4% to +6%).
Related: The Best U.S. Real Estate Markets for First Time Investors
Expected Home Price Change in Primary Market (Next 12 Months) by Region (Q2 2025)
| Region | 7% | +4% to +6% | +1% to +3% | 0% | -1% to -3% | -4% to -6% | -7% |
|---|---|---|---|---|---|---|---|
| Northeast | 13% | 44% | 25% | 9% | 6% | 3% | 0% |
| Midwest | 6% | 30% | 46% | 0% | 17% | 1% | 0% |
| Southwest | 22% | 35% | 9% | 0% | 22% | 13% | 0% |
| Southeast | 5% | 20% | 30% | 0% | 12% | 19% | 10% |
| West | 31% | 31% | 0% | 0% | 6% | 19% | 13% |
| U.S. Total | 6 | 28 | 34 | 0 | 12% | 12% | 7% |
Source: LendingOne-ResiClub SFR Investor Survey Q2 2025
Analysis: Overall, 68% of investors expect home prices to increase by 1% or more. The West and Southwest show a higher percentage of investors expecting significant price increases (7% or +4% to +6%). However, a notable portion of investors, particularly in the Southeast and West, also anticipate some price declines, suggesting regional variations in outlook.
Related: How Much Have U.S. House Prices Gone up in The Past 30 Years
Cost Increases and Mortgage Rate Expectations
While sentiment is largely positive, investors are also keenly aware of rising operational costs. Mortgage rate expectations also play a role in their outlook.
Biggest Cost Increases Over Past 12 Months (Q4 2024 vs. Q2 2025)
| Cost Category | 2024 Q4 | 2025 Q2 |
|---|---|---|
| Insurance Premiums | 36.6% | 29.1% |
| Property Taxes | 23% | 29.6% |
| Mortgage Interest Rates | 21.3% | 24.6% |
| Utilities | 13.1% | 11.6% |
| Legal and Compliance Costs | 5.5% | 4% |
| Property Management Fees | 0.9% | 0.5% |
Source: LendingOne-ResiClub SFR Investor Survey Q2 2025
Analysis: Property taxes and insurance premiums remain the top concerns for cost increases, with property taxes showing a notable jump from Q4 2024 to Q2 2025. Mortgage interest rates also continue to be a significant factor. Investors must factor these rising expenses into their financial models.
How Rising Home Insurance Premiums Impacted Cash Flow (Past 12 Months)
| Impact Category | 2024 Q4 | 2025 Q2 |
|---|---|---|
| No Impact | 16.9% | 9.5% |
| Slightly Impacted | 35.5% | 31.7% |
| Moderately Impacted | 29.5% | 41.7% |
| Significantly Impacted | 18% | 17.1% |
Source: LendingOne-ResiClub SFR Investor Survey Q2 2025
Analysis: While the “Significantly Impacted” percentage remained stable, a larger portion of investors moved into the “Moderately Impacted” category for home insurance premiums. This reinforces that insurance costs are a growing concern directly affecting profitability.
How Insurance Costs Have Changed Over Past 5 Years by Region (Q2 2025)
| Region | Decreased | Increased by <10% | Increased by 10-20% | Increased by 20-50% | Increased by >50% |
|---|---|---|---|---|---|
| Northeast | 0% | 15.6% | 53.1% | 28.1% | 3.1% |
| Midwest | 3.7% | 22.2% | 37% | 25.9% | 11.1% |
| Southwest | 0% | 26.1% | 21.7% | 52.2% | 0% |
| Southeast | 0% | 14.9% | 33.8% | 39.2% | 12.2% |
| West | 0% | 31.3% | 25% | 25% | 18.8% |
| U.S. Total | 1% | 19.6% | 35.7% | 34.2% | 9.5% |
Source: LendingOne-ResiClub SFR Investor Survey Q2 2025
Analysis: A vast majority of investors (99% U.S. Total) have seen insurance costs increase over the past five years. The Southwest and Southeast show particularly high percentages of increases by 20-50% or more, indicating significant regional challenges with insurance costs.
Expected 30-Year Fixed Mortgage Rate (Next 12 Months)
| Rate Range | 2024 Q4 | 2025 Q2 |
|---|---|---|
| <5.0% | 1.6% | 2.5% |
| 5.0%-5.5% | 12.6% | 6.5% |
| 5.5%-6.0% | 26.2% | 14.1% |
| 6.0%-6.5% | 30.6% | 19.6% |
| 6.5%-7.0% | 20.2% | 39.2% |
| 7.0%-7.5% | 6.0% | 15.6% |
| >7.5% | 2.7% | 2.5% |
Source: LendingOne-ResiClub SFR Investor Survey Q2 2025
Analysis: The shift in expectations for mortgage rates is significant. In Q2 2025, nearly 60% of investors expect rates to be 6.5% or higher, with a notable increase in the 6.5%-7.0% range. This suggests that investors are not banking on a dramatic drop in borrowing costs. This outlook reinforces the importance of strong cash flow from rents to offset higher financing expenses.
Related: U.S. Mortgages for Foreign Nationals and Non Residents: Everything You Need to Know
Conclusion: Confident Investors Navigating Rising Costs
The Q2 2025 SFR Investor Survey paints a picture of a confident investor base. They are actively looking to buy, largely holding onto their properties, and expect continued positive momentum in both home prices and rental demand. This optimism is reflected in their plans to raise rents.
However, this confidence is tempered by the reality of rising operational costs, especially property taxes and insurance. Investors are also realistic about mortgage rates, not expecting significant drops in the near future.
For real estate investors, these findings underscore the importance of:
- Thorough Financial Planning: Account for rising property taxes and insurance when evaluating new acquisitions and managing existing portfolios.
- Focus on Strong Rental Markets: Markets with robust rental demand will be key to sustaining cash flow amidst higher costs.
- Long-Term Strategy: The “hold” mentality among investors suggests a belief in long-term appreciation, making patience a virtue.
- Adaptability: Be prepared to adjust rent strategies to cover increasing expenses while maintaining competitiveness.
By understanding these trends, real estate investors can make more informed decisions and position themselves for continued success in the evolving U.S. housing market.
Previous Article: International Investment in U.S. Real Estate: 2024 in Review
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GROW YOUR WEALTH WITH U.S. REAL ESTATE
Start your US real estate investment journey today, and book a Free 1-2-1 Discovery Call with a member of our senior management team.
“Having personally invested in over 120 US rental properties from overseas, I know the true value of getting the right advice and support.
David Garner – Cashflow Rentals
Frequently Asked Questions (FAQs)
Q1: What is the overall sentiment of single-family rental investors regarding buying new properties in the next 12 months?
A1: Nearly half (48%) of single-family rental investors surveyed are likely or very likely to buy new properties in the next 12 months, indicating strong confidence in the market.
Q2: How do investors perceive home price momentum and rental demand in their primary markets?
A2: A significant majority of investors (90%) describe home price momentum as “strong” or “somewhat strong,” and even more (93%) view rental demand in the same positive light over the past 12 months.
Q3: What are the biggest cost increases reported by single-family rental investors over the past 12 months?
A3: Property taxes (25.03%) and insurance premiums (24.02%) were cited as the biggest cost increases impacting single-family rental investors’ cash flow in the past 12 months.
Q4: What are investors’ expectations for 30-year fixed mortgage rates in the next 12 months?
A4: Most investors (over 50%) expect 30-year fixed mortgage rates to remain elevated, anticipating them to be 7.0% or higher in the next 12 months.
Q5: Are single-family rental investors planning to raise rents in the next year?
A5: Yes, a large majority of investors (93%) plan to increase rents by 0% or more in the next 12 months, with 69% planning increases of 2% or more.
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