A recent study by RentRedi reveals that most American real estate investors are gearing up to expand their portfolios in 2025, with many also planning significant investments in property renovations. The survey, conducted from November 7–22, 2024, highlights a strong growth mindset among landlords, indicating a commitment to both acquiring new properties and improving existing ones.
Here are some key insights from the study:
Real Estate Acquisition Plans
According to the survey, 59% of U.S. landlords intend to purchase more real estate in 2025. The highest rates of anticipated purchases are among landlords in the Midwest and South (69% each), followed by the Northeast (68%). Landlords in the Western U.S. are slightly below the national average, with 52% planning to acquire new properties.
Landlord Size Influences Acquisition Plans
Landlords with larger portfolios are more likely to invest in additional properties. Of those with 20+ rental units, 73% plan to acquire more properties in 2025. Meanwhile, 69% of medium-sized landlords (5-19 units) and 63% of small landlords (1-4 units) share similar intentions.
Renovations a Priority for Landlords
In addition to new purchases, 52% of landlords plan to invest at least $5,000 per unit in home improvements in 2025. Notably, 27% of landlords plan to spend $20,000 or more on renovations per property. Large landlords (37%) are leading this trend, with a greater percentage investing in substantial upgrades compared to small landlords (20%).
Regional Spending Variations
The survey indicates significant regional differences in renovation budgets. Landlords in the Northeast are the most committed to major renovations, with 60% allocating more than $5,000 per property. In contrast, landlords in the South are more cautious, with 52% spending less than $5,000 on home improvements.
Financial Goals Remain Central
The primary objective for most landlords in 2025 is generating income (43%), followed by achieving financial independence (19%) and long-term investment (33%). Interestingly, short-term value gains were seen as the least important factor for long-term wealth-building, aligning with the continued belief that real estate is a solid investment strategy for most Americans.
Operational Challenges and Obstacles
Despite the optimism for growth, landlords still face several challenges. The biggest hurdle for 31% of landlords is the time commitment required to manage properties, while operational costs such as maintenance, property taxes, and insurance, along with increasing regulatory demands, remain ongoing concerns.
Tech-Driven Solutions for Efficiency
RentRedi’s platform aims to help landlords overcome these challenges by streamlining operational tasks such as listing properties, tenant screening, rent collection, and maintenance coordination. With features like same-day settlements, faster 2-day funding, and the ability to add an unlimited number of properties and tenants, RentRedi is positioning itself as a key tool for landlords to manage and scale their portfolios more efficiently.
This survey highlights the growing confidence among landlords in their ability to expand their portfolios and manage larger investments, especially with the aid of modern technology. With a focus on both property acquisition and renovation, landlords are preparing for a successful year in 2025.
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