Landlords Shift Focus: New Survey Reveals Decline in Property Acquisitions Amid Rising Investment in Existing Rentals

NEW YORK, July 22, 2025 (GLOBE NEWSWIRE) — Recent surveys conducted by RentRedi, a leading rental management software provider, in collaboration with BiggerPockets, have unveiled a significant transformation in landlord strategies for 2025. The data indicates a notable 14-point drop in the number of landlords planning to acquire new properties, driven by concerns over escalating home prices and interest rates. Conversely, there is a marked increase in investments directed toward enhancing existing rental properties.

A Shift in Acquisition Plans

The latest survey, which followed a similar study from November 2024, reveals that the percentage of landlords intending to purchase new properties has decreased from 67% to 53% between late 2024 and mid-2025. This decline reflects a growing sentiment among landlords to hold steady rather than expand their portfolios. Notably, the proportion of landlords with no plans to alter their portfolios surged by 11%, rising from 32% to over 43%. Furthermore, fewer than 4% of landlords expressed intentions to sell a rental property this year.

Regional Insights

The survey highlights regional disparities in landlord sentiment. The West experienced the most significant shift, with the number of landlords indicating no plans for portfolio changes climbing from 39% to 53%. In contrast, the Northeast remains the most acquisition-oriented region, where 57% of investors still plan to buy property, surpassing the national average.

Size Matters: Landlord Portfolio Dynamics

The survey also revealed differences in acquisition plans based on portfolio size. While all categories of landlords reported a decline in buying intentions, larger landlords (those with 20 or more units) remain more active in the market. Over 20% of these landlords plan to buy or sell properties this year, compared to just 5% of small landlords (1-4 rental units). Nearly half of small landlords indicated they have no plans to change their portfolios, contrasting with 38% of large landlords.

Increased Investment in Property Improvements

Amidst the decline in acquisition plans, landlords are significantly ramping up their investment in property improvements. As of June 2025, 35% of landlords expect to spend over $20,000 on upgrades, a rise from 27% in November 2024. Nearly two-thirds of respondents anticipate spending more than $5,000 in total on renovations.

Larger landlords are leading this trend, with nearly two-thirds expecting to invest over $20,000, up from 36% in the previous survey. In contrast, small landlords remain more conservative, with nearly half budgeting under $5,000 for improvements.

Regional Spending Trends

The Midwest and West regions have seen the most dramatic increases in high-dollar spending, with the share of landlords planning to invest more than $20,000 rising by over 10 percentage points in both areas. However, a concurrent survey revealed that exactly half of landlords have paused some or all home improvement projects planned for 2025, indicating a diverse range of financial strategies and priorities based on portfolio structure and resources.

Barriers to Acquisition

A separate survey conducted in July 2025 explored the reasons behind the declining acquisition plans. More than half of the landlords cited rising property prices as the primary barrier to purchasing new properties, while nearly a quarter pointed to high interest rates. Other challenges included slow revenue growth and the time commitment required for managing additional properties.

Landlord Goals and Priorities

When asked about their objectives for utilizing tools and resources in their rental businesses, over one-third of landlords indicated that increasing revenue was their top priority. Another third emphasized the importance of saving time and effort, followed by reducing costs and enhancing property value.

Ryan Barone, Co-founder and CEO of RentRedi, commented on the evolving landscape: "With tools like RentRedi, landlords are managing their properties more efficiently, even as they face evolving challenges. From automation to mobile access to financial reporting, we’re focused on giving landlords the control and visibility they need to make smarter decisions—whether they’re expanding, renovating, or holding steady."

Consistent Motivations Among Landlords

Despite the changing market dynamics, landlord motivations have remained consistent. Income generation continues to be the primary reason for managing rental properties, selected by over 40% of respondents. This is followed by long-term investment and financial freedom. Interestingly, larger landlords are more focused on income generation, with over half prioritizing it as their main goal, compared to about one-third of smaller landlords.

Diversification: A Low Priority

The survey also revealed that diversification is not a significant priority for landlords in 2025. Approximately 40% of landlords indicated they do not plan to diversify their portfolios by property type or location, while another quarter expressed uncertainty about diversification strategies. Slightly more than one-third of landlords plan to diversify in any way this year.

Conclusion

This report is part of RentRedi’s ongoing initiative to provide real-world insights from landlords and property managers through data, direct surveys, and collaborations with trusted communities like BiggerPockets. As the rental market continues to evolve, landlords are adapting their strategies to navigate challenges and seize opportunities. For more detailed insights and survey results, visit RentRedi’s Rental Market Insights.

Survey Methodology

The RentRedi survey was conducted between June 3-26, 2025, with a total of 1,623 respondents. Landlords were categorized by U.S. regions and portfolio sizes. The full survey results can be accessed through RentRedi’s platform.

About RentRedi

Founded in 2016, RentRedi is a leading rental property management platform that simplifies the renting process for landlords and tenants alike. With a comprehensive suite of tools for rent collection, tenant screening, lease signing, and maintenance coordination, RentRedi empowers landlords to efficiently manage their properties. The company has garnered recognition in the PropTech market and continues to innovate in the rental management space. For more information, visit RentRedi.com.