U
S real estate investors are optimistic about the rental housing market, with a majority planning to expand their portfolios and invest in property improvements in 2025. According to a recent survey by RentRedi, 59% of US landlords intend to acquire new properties this year, with larger landlords leading the charge at 73%. Regional differences exist, with Midwest and South-based landlords most likely to expand, while those in the West lag behind.

    Landlords are seeking efficiency through technology, with many using platforms like RentRedi to streamline processes and scale quickly. Beyond acquisitions, investors are prioritizing renovations, with 52% budgeting at least $5,000 per unit for improvements. Large landlords plan to be the biggest spenders, allocating an average of $20,000 or more per unit.

    Income generation remains the top priority for landlords in 2025, cited by 47% of respondents as their main goal. Despite expansion and renovation plans, time commitment is a significant barrier, with 31% of landlords citing it as a major obstacle. Rising maintenance costs, property taxes, and insurance expenses also pose challenges, while more stringent laws and regulations continue to shape landlord decision-making across regions and portfolio sizes.

    Landlords in the Northeast are most committed to renovations, with 60% planning to spend $5,000-plus per property. Those in the South take a more conservative approach, budgeting less than $5,000 per unit for improvements. Overall, landlords remain focused on long-term growth and profitability despite economic and regulatory challenges.