In these uncertain economic situations, proven investments like real estate may seem attractive. Buying investment property is one of the more common ways to invest in real estate. Whether you rent a place or modify it to get a quick profit, here are the latest investment and rental property statistics to guide your choice.
Real Estate Investment Statistics
- Investors’ home buying activities have been slower recently. Redfin data Investors have shown that 17.1% of the homes sold in the final quarter of 2024 have been purchased at the lowest level since 2020 since the fourth quarter.
- The most popular home types purchased by investors were single-family homes (69.4% share per Redfin), followed by condominiums (17.5% share).
- The average down payment for purchasing investment properties was 27.4% in the fourth quarter of 2024. Realtor.com. This is almost twice the average down payment for a home purchase (14.4%).
- House flipping activity also slowed in 2024, down 7.7% from 2023, according to ATTOM.
- Attom’s data show investors have increased their gross profit from $67,846 in 2023 to $72,000 in 2024. The average return on investment was 29.6%.
Rental Property Statistics
- There are 19.3 million properties available for rent in the US. Census Bureau. In total, there are 49.5 million rental units in the US.
- As of April 2025, Zillow’s data shows that a typical apartment rent was $1,858 a month. For a detached house, that amount was much higher at $2,256.
- In 2024, new apartment construction has increased, with the number of additional additions to the rental market exceeding 500,000. According to Rentcafe.
- The company’s latest data showed that the top five most popular markets for apartment rentals are Washington, DC, Cincinnati, Chicago, Kansas City and Atlanta.
- For rental apartment owners, operating expenses rose 7.1% in 2024. Harvard University Housing Research Center. This was mainly due to a significant increase in owners’ premiums.
How rental prices vary from state to state
Data from World Population Review Rents tend to be higher in many of the same housing markets, known for their high home prices.
The states with the most expensive average rents in 2025 are:
- Massachusetts ($2,837)
- New York ($2,739)
- Hawaii ($2,668)
- California ($2,587)
- Washington DC ($2,474)
And the states with the lowest average rent are:
- Oklahoma ($1.035)
- North Dakota ($1,077)
- Archans ($1,093)
- South Dakota ($1,127)
- Iowa ($1,220)
Some states have seen significant changes in rental prices over the past year. Rentals in both Montana and Idaho rose more than four times the national average between 2024 and 2025, according to a recent analysis of Zillow data by construction coverage. Both states saw an increase of over 20%. In contrast, Rhode Island, Wyoming and South Dakota all experienced significant rent reductions over the same period.
Current investment property fees
Investors need to recognize how much the investment costs in terms of interest on loans. Investment property loans are generally expensive Mortgage fees Compare it with loans from major residences. Banks and other lenders charge more to compensate for the higher risk of property that the owner is not occupied. The gap between the two fluctuates, but it could be somewhere between half the points to the full points difference.
Is real estate a good investment?
There is a certain amount of risk to any type of investment. In particular, in an unstable economy like 2025, it has been unstable so far. but real estate It is widely considered one of the better bets.
Owning residential property as an investment can bring multiple benefits, says Mark Hamrick, a senior economic analyst at Bankrate, to:
- Passive income
- Potential tax benefits from deducting mortgage interest and other expenses
- Appreciation for the value of assets
- Diversification of portfolio
“Inflation protection is another potential benefit,” says Minette Schwartz, an agent for the Schwartz team at Miami Beach Compass. “In many cases, rent prices rise with inflation. This means rental income rises over time, and can even maintain or increase purchasing power.”
That said, investing in real estate has drawbacks that can have a significant impact on returns if you are not prepared. Make sure you are ready:
- Carrying Cost: There will be maintenance costs and the possibility of vacant seats that are difficult to fill. Experts recommend applying 1% rule To protect yourself from unprofitable results.
- Market Changes: The housing market has been unpredictable these days, so investments are also unpredictable. “Market volatility is another factor that can affect the profitability of your investment,” Schwartz says. “The value of assets can fluctuate based on location and broader economic circumstances. Unemployment in this area, for example, can reduce the demand for rental properties, reduce rental fees or increase availability.”
- Longer sales timeline: If you need cash right away, it takes longer to sell your property than other investments, says Hamrick.
Conclusion
Real estate is generally considered a fairly safe investment, but it is by no means cheap. Investors looking to make money on rental properties or house flips should have a well-mapped plan on how to fund and use their assets and how much revenue they will generate before purchasing them.
