{"id":177748,"date":"2024-09-23T13:02:35","date_gmt":"2024-09-23T19:02:35","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=177748"},"modified":"2024-11-12T10:31:26","modified_gmt":"2024-11-12T17:31:26","slug":"baselane-real-estate-investor-survey-2024","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/baselane-real-estate-investor-survey-2024","title":{"rendered":"Baselane&#8217;s Survey of Investors Gives Inside Look at What&#8217;s Really Happening in Real Estate"},"content":{"rendered":"\n<p><span data-preserver-spaces=\"true\">The 2024 <a href=\"https:\/\/www.baselane.com\/resources\/real-estate-investor-survey-2024\/\" target=\"_blank\" rel=\"noopener\">Baselane Real Estate Investor Survey<\/a> reveals optimism among investors despite rising costs. Key takeaways include:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">81% of investors plan to grow their portfolios within two years.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Investors are less worried about vacancies, focusing on financing costs (35%) and home prices (33%).<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">22% faced rental insurance hikes of 11% or more, and 50% saw property tax increases of over 6%.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Conventional loans remain the top financing option (44%).<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Investors Are Growing Portfolios But Skeptical&nbsp;<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">No, the sky is not falling on real estate investors, and they are not waving the white flag. I agree that transactions may be down, but that doesn\u2019t mean that investor sentiment is changing. Over 81% of investors are intending to grow their portfolio over the next two years, according to a recent investor survey by <\/span><a href=\"https:\/\/www.baselane.com\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/www.baselane.com\" rel=\"noreferrer noopener\"><span data-preserver-spaces=\"true\">Baselane<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1999\" height=\"1125\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image4.jpeg\" alt=\"baselane result\" class=\"wp-image-177754\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image4.jpeg 1999w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image4-300x169.jpeg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image4-1024x576.jpeg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image4-768x432.jpeg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image4-1536x864.jpeg 1536w\" sizes=\"auto, (max-width: 1999px) 100vw, 1999px\" \/><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">After reading through the survey, it became clear that investors are optimistic but cautious when underwriting deals. Indeed, 17% of investors felt comfortable with their portfolio and did not feel the need to expand anytime soon.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">As rental demand stays steady, vacancy concerns have dwindled, as over 52% of investors are less or much less concerned about them than in 2023.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1999\" height=\"1125\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image1-1.jpeg\" alt=\"baselane result\" class=\"wp-image-177751\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image1-1.jpeg 1999w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image1-1-300x169.jpeg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image1-1-1024x576.jpeg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image1-1-768x432.jpeg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image1-1-1536x864.jpeg 1536w\" sizes=\"auto, (max-width: 1999px) 100vw, 1999px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Affordability Is at the Forefront<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Getting tenants in does not seem to be the issue, but financing and rising home prices that rental rates can\u2019t keep up with are. According to the <a href=\"https:\/\/www.nar.realtor\/infographics\/existing-home-sales-housing-snapshot\" target=\"_blank\" rel=\"noreferrer noopener\">National Association of Realtors (NAR)<\/a>, the median home price for July 2024 has risen 4.2% year over year (YoY) to a whopping $422,600. The explosion over the last four years is quite staggering when you consider most sales during that time were made with interest rates below 3%.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1999\" height=\"1130\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image2-1.jpeg\" alt=\"median price baselane result\" class=\"wp-image-177752\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image2-1.jpeg 1999w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image2-1-300x170.jpeg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image2-1-1024x579.jpeg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image2-1-768x434.jpeg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image2-1-1536x868.jpeg 1536w\" sizes=\"auto, (max-width: 1999px) 100vw, 1999px\" \/><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">Potential sellers\u2019 mortgages are at their pandemic interest rates, <\/span><span data-preserver-spaces=\"true\">and<\/span><span data-preserver-spaces=\"true\"> so they are locked in and not letting go, understandably. That same reason leaves buyers on the sidelines waiting, hopefully, for rates to drop.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Data from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development shows that as of August, housing starts for privately owned homes have decreased by 6.8% since June and 16% compared to July 2023.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Insurance, Taxes Are Concerns<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">If you have owned a house over the last few years, you <\/span><span data-preserver-spaces=\"true\">probably<\/span><span data-preserver-spaces=\"true\"> have seen insurance costs going through the roof (pun intended) and taxes pacing the rising home prices.<\/span><span data-preserver-spaces=\"true\"> Nearly a quarter (22%) of those surveyed saw rental property insurance hikes of 11% or more, and 13% experienced increases over 20%.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Taxes are going higher than the Smoky Mountains, with 50% of investors seeing increases over 6%, and 18% facing rises of 11% or more.&nbsp;<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1999\" height=\"1125\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image5.jpeg\" alt=\"baselane result\" class=\"wp-image-177755\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image5.jpeg 1999w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image5-300x169.jpeg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image5-1024x576.jpeg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image5-768x432.jpeg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image5-1536x864.jpeg 1536w\" sizes=\"auto, (max-width: 1999px) 100vw, 1999px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Conventional Financing Is Still King<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">As for financing real estate investments, 44% of investors stick with conventional loans, like they&#8217;re the comfy sweatpants of the real estate world\u2014reliable and familiar. This choice blows other options out of the water, such as all-cash purchases (for those who\u2019ve found a hidden treasure chest), private money loans, HELOCs, seller financing, and <\/span><span data-preserver-spaces=\"true\">hard<\/span><span data-preserver-spaces=\"true\"> money. <\/span><span data-preserver-spaces=\"true\">Clearly,<\/span><span data-preserver-spaces=\"true\"> most investors like to keep things simple with the old faithful of property buying.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1999\" height=\"1192\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image6.jpeg\" alt=\"baselane result\" class=\"wp-image-177756\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image6.jpeg 1999w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image6-300x179.jpeg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image6-1024x611.jpeg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image6-768x458.jpeg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image6-1536x916.jpeg 1536w\" sizes=\"auto, (max-width: 1999px) 100vw, 1999px\" \/><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">Rates have finally seen some relief, with a <\/span><span data-preserver-spaces=\"true\">current<\/span><span data-preserver-spaces=\"true\"> rate of 6.2%, the lowest since February 2023. This is a dramatic swing from the highs of 7.79% in 2023, with investors hoping to move further from that number.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Financing, Home Prices Top Priorities<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">With mortgage rates likely staying around 6% next year and the <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.nahb.org\/news-and-economics\/press-releases\/2024\/02\/single-family-starts-will-rise-in-2024\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">housing market<\/span><\/a><span data-preserver-spaces=\"true\"> not balancing supply and demand until 2025 (or beyond), it&#8217;s no surprise that financing (35%) and home prices (33%) are major concerns for investors.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1999\" height=\"1192\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image3.jpeg\" alt=\"baselane result\" class=\"wp-image-177753\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image3.jpeg 1999w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image3-300x179.jpeg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image3-1024x611.jpeg 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image3-768x458.jpeg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/09\/image3-1536x916.jpeg 1536w\" sizes=\"auto, (max-width: 1999px) 100vw, 1999px\" \/><\/figure>\n\n\n\n<p><span data-preserver-spaces=\"true\">Adding to investors&#8217; worries is the growing presence of institutional investors\u2014those snapping up 1,000 properties a year. Their large-scale buying can drive up prices in certain areas, making it challenging for local investors to compete. This trend was evident in Q1 2024, with <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.redfin.com\/news\/investor-home-purchases-q1-2024\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">18.7% of U.S. homes<\/span><\/a><span data-preserver-spaces=\"true\"> sold to institutional investors\u2014the highest percentage in almost two years. These homes were flipped for an average <\/span><span data-preserver-spaces=\"true\">hefty<\/span><span data-preserver-spaces=\"true\"> 55.2% profit, up from 46.3% the previous year.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">On the other hand, limited housing supply and skyrocketing home prices are boosting rental demand. Currently, renting is <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.thezebra.com\/resources\/research\/renting-statistics\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">27% cheaper<\/span><\/a><span data-preserver-spaces=\"true\"> than buying in all 50 largest metro areas. As more people get priced out of homeownership, they turn to renting, creating an opportunity for independent investors to tap into this demand and increase portfolio returns.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Results<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Although the rising costs of buying and maintaining rental properties can be challenging for some, they also reflect the strength and stability of the real estate market. As one investor said, \u201cReal estate is always a solid investment\u2014you just need to find the right property.\u201d<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Research Methodology&nbsp;&nbsp;<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Baselane conducted an online survey of U.S. landlords and real estate investors within our network from June 18-26, 2024. We surveyed approximately 2,116 investors and continued collecting responses until reaching a response rate of over 10%, ensuring a statistically significant sample size.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">This landlord survey aimed to gather critical insights into investment strategies, financing preferences, property ownership costs, and expectations for the future of the real estate market. To maintain the accuracy and relevance of the data, we used neutral, non-leading questions and applied branching logic to display or hide questions based on previous responses. The sentiment was measured using a 1-5 scale, ranging from \u201cStrongly Disagree\u201d to &#8220;Strongly Agree.\u201d<\/span><\/p>\n\n\n\n<div id=\"hero-block_1596ab809c2573df99a43c8c00a24b9b\" class=\"first:mt-0 hero-block py-4  alignfull   has-background has-slate-50-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 lg:w-1\/2 \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Find the Hottest Deals of 2025!<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:18px\">Uncover prime deals in today&#8217;s market with the brand new Deal Finder created just for investors like you! Snag great deals FAST with custom buy boxes, comprehensive property insights, and property projections.<\/p>\n\n\n\n<div id=button-custom-event-block_ee03033c06476a1240e902f606732960 class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/deals\" x-on:click=\"window.analytics.track(&#039;Blog Block | Deal Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/baselane-real-estate-investor-survey-2024&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-gold-background-color has-text-color has-white-color\" target=\"_blank\">Snag a Deal<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\"lg:w-1\/2 first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1-6-1.png\" alt=\"\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>The 2024 Baselane Real Estate Investor Survey reveals optimism among investors despite rising costs. Key takeaways include: Investors Are Growing Portfolios But Skeptical&nbsp; No, the sky is not falling on [&hellip;]<\/p>\n","protected":false},"author":613755,"featured_media":177757,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-177748","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-trends"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/177748","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613755"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=177748"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/177748\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/177757"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=177748"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=177748"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=177748"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}