Real Estate Investor Confidence Sinks to Two-Year Low: RCN Capital Index

Real estate investor sentiment has declined for the second consecutive quarter, falling nine points from the prior quarter to a score of 88, according to the Spring 2025 RCN Capital/CJ Patrick Company Investor Sentiment Index. This marks the lowest level since the index began in Fall 2023, down 12 points from a year ago and a steep 36 points from its peak of 124 in Fall 2024.

The survey revealed a significant drop in optimism about current market conditions. Only 31% of investors viewed today’s market as better or much better than a year ago, down from 35% in the Winter 2024 survey. The share of investors who saw the market as unchanged fell from 41% to 34%, while those reporting worse or much worse conditions rose from 25% to 34%.

Looking forward, investor outlooks for the next six months were evenly divided: 34% anticipated improvement, 33% expected stability, and 33% predicted a decline. The 33% expecting worsening conditions reflects a 14-point increase from the previous quarter, marking the most pessimistic score since the survey’s inception.

“Investor sentiment is trending along the same lines as homebuilder sentiment and consumer sentiment, which recently recorded its second-lowest score in over 50 years,” said RCN Capital CEO Jeffrey Tesch. “Our survey results suggest that enthusiasm among both rental property and fix-and-flip investors is being challenged by economic uncertainty, rising home prices and insurance prices, and high finance costs.

The index, based on a quarterly survey of residential real estate investors, tracks four key metrics: current market outlook, future market outlook, expected home price increases, and planned property purchases.