Real estate investment trends indicate that 2025 will be an exciting year for investors. With property values expected to rise and market conditions shifting, strategic investors can position themselves for strong returns. The National Association of Realtors predicts a 2–3% increase in property prices next year, reinforcing real estate’s reputation as one of the highest-ROI investments.
So, don’t let fear or doubt hold you back–waiting for a perfect rate environment could mean missing out on prime opportunities. After all, history shows that interest rates have often exceeded 8 percent. Successful investors don’t focus on cost–they focus on value. You can stay ahead of the curve by recognizing key trends, making informed decisions, and taking faith-filled risks.
With that, here are 5 key trends to inform your real estate decisions this year:
1. Commercial real estate is bouncing back
2. Buyers prefer move-in ready homes
3. ADUs are on the rise
4. Vacation rentals continue to surge
5. Buy-and-hold remains a profitable and popular strategy
5 Real Estate Investment Trends to Watch in 2025
1. Recovery in Commercial Real Estate
After a challenging period, commercial real estate is showing signs of recovery. Major landlords are shifting investments from traditional office spaces to residential developments. Banks have resumed lending, and deal activity is picking up. While office vacancies remain high, evolving remote and hybrid work patterns are opening new leasing opportunities (CBRE, 2024).
There are many different pathways you can follow to get into commercial real estate – retail, multi-family, office space, and healthcare are just a few options. To learn more about how to succeed and scale in commercial real estate, register for our WealthBuilders Real Estate Workshop, April 25-27!
2. Move-In Ready Homes Driving Fix-and-Flip Demand
Do you have an eye for design, a mind for business strategy, and spend a little too much time watching HGTV shows? Then fix and flips may be a great option for you! And here’s the good news: homebuyers are increasingly favoring move-in ready homes over fixer-uppers. According to Zillow, buyers are willing to pay about 4% more for renovated properties to avoid the cost and hassle of remodeling.
What does that mean for you?
More “needs repair,” “as is,” and “investor special” properties on the market that you can sweep up for pennies on the dollar. This trend presents opportunities for investors focused on fix-and-flip strategies, as demand for turnkey homes continues to grow.
Related Post: 5 Practical Tips for Success with Fix and Flips
3. The Rise of Accessory Dwelling Units (ADUs)
Accessory dwelling units (ADUs) are one of the hottest real estate investment trends. They present a great opportunity to increase your passive income streams. An ADU is a separate, independent living space with its own entrance, kitchen, bathroom, and sleeping area. They come in the form of basement apartments, backyard cottages, garage condos, and even trailers. You can add one to your primary residence or investment properties for a minimal cost.
Whereas legislation has opposed ADUs in the past, states like Arizona and Nebraska have introduced new regulations to allow ADUs on residential lots, and Texas lawmakers are working to ease restrictions (National Association of Home Builders, 2024).
ADUs provide strong cash flow potential, especially in high-cost housing markets. As more municipalities adopt ADU-friendly policies, these units may become a mainstream investment option. You can rent an ADU out on a long-term lease for consistent cash flow or use it as a short-term rental on platforms like Airbnb and VRBO.
Want to learn more creative ways to find and fund investment properties? Click the banner to learn more about how you can be a part of The WealthBuilders Real Estate Workshop.
4. Vacation Rentals Continue to Surge
Valued at $82 billion, the vacation rental market is projected to soar to $120 billion by 2030! This booming industry offers a unique opportunity to generate significant income, optimize tax benefits, and have a strong exit strategy.
Travelers aren’t just looking for any home, though. They prefer unique experiences and favor properties such as tiny homes (hello ADUs, remember?), A-frames, eco-lodges, and themed stays (Airbnb, 2024).
Secondary markets, including mountain towns and lakeside retreats, are seeing growing demand. Meanwhile, luxury vacation rentals with premium amenities like hot tubs, smart home technology, and EV chargers are attracting high-paying guests (VRBO, 2024).
So, if you want to travel and make money at the same time, vacation rentals could be a great fit for you!
5. Strong Demand for Buy-and-Hold Investments
Buy-and-hold real estate remains one of the best strategies for building generational wealth (and capturing monthly passive income in the meantime).
Here are a few of your options:
- Single-Family Rentals – Consistent demand and appreciation potential make these a reliable investment.
- Multifamily Properties (2-4 Units) – Easier to finance than large apartment buildings while offering strong rental income. You can “house hack” and secure cheaper, homeowner financing by living in one and renting out the other(s).
- Build-to-Rent Communities – Purpose-built rental neighborhoods are becoming more common, offering scalability and reliable cash flow (Forbes, 2024).
- Commercial Mixed-Use – Properties that combine residential and retail spaces provide diversified income streams and increased stability.
Final Thoughts
There are so many opportunities to achieve your real estate goals in 2025! From commercial opportunities to vacation rentals and long-term buy-and-hold investments, there is no reason for you to stay on the sidelines. Which of the real estate investment trends listed appeals most to you? Let us know in the comments!
If you’re ready to get in the game and take the next step to start or scale your portfolio, The WealthBuilders Real Estate Workshop is for you. Join us April 25-27th, in Denver, Colorado, or via livestream. This is the premier event for Christian real estate investors to receive economic insights, cutting-edge strategies, and the specialized knowledge they need to move to the next level. Click here to learn more and register!
