Mid-2025 Real Estate Update: Where We Are and What’s Working
Mid-2025 Real Estate Update: Where We Are and What’s Working
The first half of 2025 has validated much of what patient investors were positioned for: improving rates, increasing transaction volume, continued strong rental demand, and real deal flow in markets with sound fundamentals. Here’s our honest mid-year assessment.
What’s Improved
Investment property rates in the 6-6.75% range have made more deals cash-flow positive than at any point since 2021. Transaction volume has picked up meaningfully — more sellers, more properties, more opportunities for buyers with capital ready. And builder inventory from the 2022-2023 overbuilding cycle, while thinning, still represents value in select markets with incentives attached.
What Hasn’t Changed (Positively)
Rental demand in our target Midwest and Southeast markets remains exceptional. Occupancy rates near historical highs, rent growth at healthy 3-5% paces, and a structural housing supply deficit that will take years to resolve. Investors who own quality properties in these markets are seeing the income thesis play out exactly as designed.
What to Watch in the Second Half
Further rate movement will be the primary market driver in H2 2025. Even another 25-50 basis points of improvement opens additional deal opportunities. Watch also for seasonal activity — summer and early fall bring more sellers to market, and quality inventory typically peaks in this window.
Our Current Focus
We’re most active in secondary Southeast markets where population growth remains strong and prices haven’t fully recovered to peak levels, creating asymmetric opportunity. New construction deals from motivated builders. And off-market acquisitions sourced through our established local networks in Huntsville, Columbus, Indianapolis, and the broader Carolinas region.
Book a mid-year strategy call — we’re actively working deals and would love to bring you in.