Is Now a Good Time to Buy an Investment Property?

With home prices and interest rates both up, a lot of people are asking the same question: is now really a good time to purchase an investment property?

The short answer is yes — and here’s why.

Even though home prices have climbed over the past few years, rents have climbed right along with them. In most markets, rental rates are up anywhere from 20% to 30% compared to just a few years ago. That means investors are still seeing solid returns, even with today’s higher prices and borrowing costs.

And if you don’t believe it, look at the data.

In the second quarter of 2025, investors purchased one in every three homes sold nationwide — that’s more than 345,000 properties changing hands in just a few months. Most of those deals, roughly 60%, were all-cash purchases. The average investor purchase price came in around $455,000, which is well below the national average home sale price.

That’s a strong signal that investors are staying active in the market — and not just institutional investors or hedge funds. In fact, over 90% of real estate investors own fewer than 11 properties. These are everyday people: small business owners, families, and local investors who see real estate as a reliable way to build long-term wealth.

So, is now a good time to invest?

If you’re buying smart — focusing on cash flow, appreciation potential, and long-term stability — the answer is absolutely yes. The key is understanding your numbers and finding the right property that fits your goals.

Even with higher interest rates, rental demand remains strong across much of the country. Many renters who would like to buy are holding off due to affordability challenges, keeping rental supply tight and prices strong. For investors, that creates an opportunity to lock in assets that generate consistent income now and are likely to appreciate over time.

Real estate has always been a cyclical market, but one thing remains true: people will always need a place to live. Whether you’re purchasing your first investment property or adding to your portfolio, smart buying decisions today can set you up for significant gains in the years ahead.

If you’ve been thinking about building wealth through real estate and want to learn how to get started, give us a call or slide into the DMs. We’d love to help you find the right opportunity and walk you through the numbers step by step.