Average ROI of Real Estate (2025): Historical Analysis & Statistics

Last Updated: December 12, 2025 by Cu Fleshman

Whether you’re a first-time landlord about to list a rental property or a seasoned investor, all property owners benefit from understanding the return on investment, or ROI, of real estate. ROI is more than just a simple equation that divides your profits by the total cost of the investment. It indicates whether your efforts are building your future or just keeping you afloat.

Real estate markets fluctuate, but this asset class remains one of the most resilient investments you can make. Home prices may rise and fall while demand continues to shift, but most property owners see noteworthy returns in the long run.

By understanding the average ROI of real estate, you can make better business decisions, refine your growth plan, and keep your rental properties profitable. In this article, we’ll examine what returns really look like across residential, commercial, and short-term rental markets. Use these insights to see where your properties stand, identify new opportunities, and strengthen your investment strategy.

Real Estate ROI Report Highlights

Before we dive into different markets, here are a few key findings from our real estate ROI report:

In 2024, the U.S. had 45.3 million rental households.
In November 2025, the average rent for U.S. apartments was $1,743, while the average rent for single-family homes was $2,000.
As of Q2 of 2025, the median sales price for houses in the U.S. was $410,800.
According to the S&P CoreLogic Case-Shiller US National Home Price Index, residential real estate has grown by 309% from March 1995 to March 2025.
From January 1778 to December 2022, the National Council of Real Estate Investment Fiduciaries (NCREIF) averaged an annual return of 9.03% for commercial real estate.
University of California economists found that housing in the U.S. saw an average annual return of 6% (adjusted for inflation) in wealthy economies from 1870–2015.

Jump to a state: AL | AK | AZ | AR | CA | CO | CT | DE | DC | FL | GA | GU | HI | ID | IL | IN | IA | KS | KY | LA | ME | MD | MA | MI | MN | MS | MO | MT | NE | NV | NH | NJ | NM | NY | NC | ND | MP | OH | OK | OR | PA | PR | RI | SC | SD | TN | TX | UT | VT | VA | VI | WA | WV | WI | WY

Largest Average One-Year Returns on Real Estate Property Investments
Property Type	1-Year ROI
Average Industrial	9.50%
Low-Rise Apartments	9.00%
Multi-Family Home	7.60%
Average Residential	7.50%
New Single Family Home	1.32%

Real Estate Investment Properties

Real estate spans between residential and commercial properties. The residential market is typically the more conservative investment, offering property owners consistently fair returns and lower risk compared to commercial assets.

The U.S. real estate market was worth $132.02 billion in 2024, and analysts expected it to grow at a CAGR of 4.1% from 2025 to 2030.
In December 2023, the value of U.S. homes reached $47.5 trillion.
In 2025, the commercial real estate outlook remains positive, with industrial, office, and retail showcasing strong performance.

Bar graph: Average Residential Real Estate Investment Property 1-Year Returns

Commercial Real Estate

Commercial real estate includes office buildings, restaurants, retail spaces, hotels, warehouses, and any other spaces where business is the primary purpose.

If an apartment building or condo has more than five units, it usually counts as a commercial real estate asset. If the apartment’s ground floor has a grocery store, cafe, or other commercial spaces, the building usually falls into the mixed-use category.

Here’s a snapshot of the market’s recent performance:

From January 1778 to December 2022, the National Council of Real Estate Investment Fiduciaries (NCREIF) averaged an annual return of 9.03% for commercial real estate.
In July of 2025, multifamily inventory grew to a record high.
Multifamily properties in Los Angeles, San Francisco, and New York performed well, while apartments in overbuilt markets across the Sun Belt haven’t caught up.
Retail trade sales increased by 3.3% from May 2024 to May 2025, which is a positive indicator for the market.
After industrial assets hit pandemic-level highs, the market has begun to normalize as of July 2025.
In Q1 of 2025, the national office vacancy rate hit a new record high of 20.4%.
JP Morgan predicts the two main areas of opportunity for investors will be:
- Affordable or workforce housing developments.
- Deals on vacant office properties.

Bar graph: Average Commercial Real Estate Investment Property 1-Year Returns

If you’re interested in expanding beyond residential real estate, here’s our helpful guide to working with commercial lease agreements to help get you started.

Residential Real Estate

Residential real estate includes single-family homes, short-term vacation rentals, and small apartment buildings or condos with fewer than five units. Here’s a quick look at the residential market:

For single-family homes in the U.S., homeowners spend an average of $21,000 per year to maintain their property.
As of Q2 2025, the national occupancy rate for apartments reached 95.7%, the highest it’s been since Q3 2022.
In 2024, the average revenue for U.S. Airbnb hosts was $36,678.
In November 2025, the average rent for U.S. apartments was $1,743, while it was $2,000 for single-family homes.

Let’s examine the short-term rentals, apartment rentals, and single-family home rentals.

Average One-Year Returns on Residential Property Investments
Property Type	1-Year ROI
Garden/Low-Rise Apartments	9.00%
Multi-Family Home	7.60%
Average Residential Property	7.50%
New Single Family Home	1.32%
Average Single Family Home	0.07%
Average Apartment Building	-0.90%
Mid- or High-Rise Apartments	-9.00%

Short-Term Rental

Vacation homes tend to rent for higher prices than long-term apartments. Here’s a quick look at the market, including Airbnb:

In 2024, the average Airbnb revenue in the U.S. was $36,678.
U.S. Airbnb hosts earn an average of $14,000 annually in 2023.
Airbnb owners with single-family homes made an average of $4,700 per month in 2023, while they made $3,800 per month on apartments. However, hosts earned an average of $2,200 per month on unique Airbnbs, including tiny homes and tree houses.
The top Airbnb markets in 2024 were:
- San Diego, CA
- Honolulu, HI
- Scottsdale, AZ
- Hollywood, FL
- Nashville, TN
- Palm Beach, FL
- Sarasota, FL

Line graph: Average U.S. Single-Family Home 1-Year Return on Investment

Apartment Rental

Typically, long-term apartment rentals may not offer as much potential cash flow as short-term rentals. However, they may be more cost effective in the long run, but it depends on many variables, including average rent prices, local inventory, and vacancy rates. Here’s the apartment rental market at a glance:

The average rent for U.S. apartments is $1,743 as of November 2025.
The average rent for studio apartments in the U.S. is $1,477, while rent for a 3-bedroom apartment averages at $2,134.
There are 44,590,838 rental-occupied households in the U.S. as of November 2025, while owners occupy 82,892,037 homes.
As of November 2025, the states with the most expensive apartment rentals are:
- Massachusetts ($2,849/month)
- California ($2,638/month)
- Washington, D.C. ($2,498/month)
The states with the most affordable apartment rentals in 2025 are:
- Oklahoma ($1,063/month)
- Arkansas ($1,133/month)
- North Dakota ($1,159/month)

Line graph: Average U.S. Single-Family Home 5-Year Return on Investment according to the Federal Reserve Bank of St. Lous, the U.S. Census Bureau, ATTOM Data Solutions, and Statista

Single-Family Home Rental

While single-family home rentals tend to have less turnover than apartments, older properties may require more maintenance, which can cut into your bottom line. Here’s a quick look at the single-family home rental market:

Rental households grew 1.9% in 2024, as 848,000 U.S. households became renters.
In 2024, there were 45.3 million rental households in the U.S.
As of November 2025, the average rent in the U.S. is $2,000.
732,012 rental properties are available across the U.S. in November 2025.
As of July 2025, the rental vacancy rate was 7%.

Line graph: Average U.S. Single-Family Home 10-Year Return on Investment from 2009 (29%) to 2023 (42%) according to the Federal Reserve Bank of St. Louis, U.S. Census Bureau, ATTOM Data Solutions, and Statista

Single-Family Home Purchase ROI in All 50 States

Whether you plan to lease the property or live in it yourself, single-family homes generally appreciate in value over time. However, many factors can influence your rate of return, including the property’s location, maintenance and repairs, property management fees, and the local market condition.

Here’s what we found while researching single-family home purchases:

According to the S&P CoreLogic Case-Shiller US National Home Price Index, residential real estate has seen 309% growth from March 1995 to March 2025.
University of California economists found that housing in the U.S. saw an average annual return of 6% (adjusted for inflation) in wealthy economies from 1870–2015.
In 2025, 24% of first-time homebuyers in the U.S. previously rented an apartment or house.
12% of homebuyers purchased a new home, while 88% purchased a previously owned home in 2025.
Buyers in 2025 expect to live in their home for a median of 15 years, while 28% said they never planned on moving.
2% of buyers in 2025 said that if any factor caused them to move, it would be flipping the home.
76% of buyers in 2025 purchased detached single-family homes, followed by townhouses or row houses at 7%.
In 2025, 26% of all home buyers paid cash for their property, continuing an all-time high for all-cash buyers.
As of July 2025, the homeowner vacancy rate was 1.1% in the U.S.

Single-Family Home Investment Returns by State
State	2000-2020 ROI	2020-2024 ROI
Alabama	180.8%	60.7%
Alaska	213.1%	30.4%
Arizona	216.2%	61.5%
Arkansas	199.7%	60.6%
California	231.2%	44.9%
Colorado	186.2%	42.9%
Connecticut	75.6%	59.9%
Delaware	158.3%	55.0%
District of Columbia	281.0%	7.7%
Florida	276.6%	79.0%
Georgia	184.7%	78.8%
Hawaii	249.2%	41.1%
Idaho	237.2%	53.5%
Illinois	113.3%	55.5%
Indiana	188.4%	66.5%
Iowa	153.4%	43.8%
Kansas	179.1%	57.1%
Kentucky	198.1%	64.9%
Louisiana	175.6%	32.4%
Maine	209.6%	70.5%
Maryland	162.8%	36.4%
Massachusetts	153.2%	55.7%
Michigan	138.8%	56.2%
Minnesota	157.3%	36.1%
Mississippi	193.6%	56.6%
Missouri	168.4%	58.0%
Montana	NA	65.7%
Nebraska	124.3%	49.2%
Nevada	194.3%	57.3%
New Hampshire	155.0%	62.2%
New Jersey	114.4%	50.6%
New Mexico	NA	66.0%
New York	234.7%	77.4%
North Carolina	160.0%	72.1%
North Dakota	NA	21.5%
Ohio	126.6%	57.3%
Oklahoma	203.6%	69.1%
Oregon	196.6%	36.2%
Pennsylvania	175.5%	50.4%
Rhode Island	171.3%	59.8%
South Carolina	188.8%	73.3%
South Dakota	157.4%	46.2%
Tennessee	206.4%	71.8%
Texas	200.9%	56.9%
Utah	166.5%	47.6%
Vermont	193.1%	54.7%
Virginia	217.7%	54.2%
Washington	184.6%	42.3%
West Virginia	180.2%	59.2%
Wisconsin	120.8%	45.2%
Wyoming	NA	40.3%

Next, we’ll look at home purchase data in all 50 states, including Washington, D.C.

Alabama Home Purchase Return on Investment

As of October 2025, Alabama’s average home value is $231,003, up 0.3% compared to last year.
The median sale price is $256,333, while the median list price is $314,000 as of September 2025.
17.5% of properties sold for over list price, while 60.7% sold under list price.
The median rent price is $1,445 as of October 2025, up $45 compared to 2024.
Alabama’s median monthly mortgage payment in 2025 is $1,500.
Home values have risen by 32% statewide from 2020–2025.

Grouped bar graph: Average U.S. Single-Family Home Returns from 2019 (82% 20-year, 35% 10-year, 5.76% 5-year) to 2023 (83.9% 20-year, 41.7% 10-year, 31.4% 5-year) according to the Federal Reserve Bank of St. Louis, U.S. Census Bureau, ATTOM Data Solutions, and Statista

Alaska Home Purchase Return on Investment

As of October 2025, Alaska’s average home value is $378,640, up 3.3% compared to last year.
The median sale price is $412,333, while the median list price is $419,990 as of September 2025.
32.8% of properties sold for over list price, while 34.8% sold under list price.
The median rent price is $1,850 as of October 2025, down $50 compared to 2024.
Alaska’s median monthly mortgage payment in 2025 is $2,253.

Bar graph: 30-Year Returns on Real Estate Investments (1983-2012) from Equity REITs (2,773%) to office buildings (585%) contrasted with the cost of inflation (34.8%)

Arizona Home Purchase Return on Investment

As of October 2025, Arizona’s average home value is $419,643, down 3.2% compared to last year.
The median sale price is $421,839, while the median list price is $469,000 as of September 2025.
13.5% of properties sold for over list price, while 64.5% sold under list price.
The median rent price is $1,985 as of October 2025, down $15 compared to 2024.
Arizona’s median monthly mortgage payment in 2025 is $1,893.

Arkansas Home Purchase Return on Investment

As of October 2025, Arkansas’ average home value is $216,341, up 0.9% compared to last year.
The median sale price is $242,500, while the median list price is $284,500 as of September 2025.
15.4% of properties sold for over list price, while 64.3% sold under list price.
The median rent price is $1,400 as of October 2025, up $5 compared to 2024.
Arkansas’ median monthly mortgage payment in 2025 is $1,375.

California Home Purchase Return on Investment

As of October 2025, California’s average home value is $761,003, down 2.1% compared to last year.
The median sale price is $731,667, while the median list price is $741,667 as of September 2025.
35.6% of properties sold for over list price, while 64.3% sold under list price.
The median rent price is $2,750 as of October 2025, down $50 compared to 2024.
California’s median monthly mortgage payment in 2025 is $3,001.

Colorado Home Purchase Return on Investment

As of October 2025, Colorado’s average home value is $535,778, down 2.3% compared to last year.
The median sale price is $541,500, while the median list price is $573,333 as of September 2025.
18.9% of properties sold for over list price, while 57.6% sold under list price.
The median rent price is $2,101 as of October 2025, down $79 compared to 2024.
Colorado’s median monthly mortgage payment in 2025 is $2,466.

Connecticut Home Purchase Return on Investment

As of October 2025, Connecticut’s average home value is $425,784, up 3.8% compared to last year.
The median sale price is $424,000, while the median list price is $459,933 as of September 2025.
59.7% of properties sold for over list price, while 29.7% sold under list price.
The median rent price is $1,950 as of October 2025, down $25 compared to 2024.
Connecticut’s median monthly mortgage payment in 2025 is $2,454.

Delaware Home Purchase Return on Investment

As of October 2025, Delaware’s average home value is $397,840, up 2.2% compared to last year.
The median sale price is $375,917, while the median list price is $436,083 as of September 2025.
21% of properties sold for over list price, while 60.2% sold under list price.
The median rent price is $2,000 as of October 2025, up $33 compared to 2024.
Delaware’s median monthly mortgage payment in 2025 is $1,821.

Florida Home Purchase Return on Investment

As of October 2025, Florida’s average home value is $374,697, down 5.4% compared to last year.
The median sale price is $370,000, while the median list price is $419,333 as of September 2025.
9.6% of properties sold for over list price, while 75.5% sold under list price.
The median rent price is $2,350 as of October 2025, down $100 compared to 2024.
Florida’s median monthly mortgage payment in 2025 is $2,168.

Georgia Home Purchase Return on Investment

As of October 2025, Georgia’s average home value is $329,583, down 2.2% compared to last year.
The median sale price is $333,333, while the median list price is $376,333 as of September 2025.
17.4% of properties sold for over list price, while 59.5% sold under list price.
The median rent price is $1,912 as of October 2025, down $38 compared to 2024.
Georgia’s median monthly mortgage payment in 2025 is $1,909.

Hawaii Home Purchase Return on Investment

As of October 2025, Hawaii’s average home value is $824,731, down 2.8% compared to last year.
The median sale price is $726,166, while the median list price is $744,667 as of September 2025.
17.2% of properties sold for over list price, while 61.7% sold under list price.
The median rent price is $3,100 as of October 2025, up $160 compared to 2024.
Hawaii’s median monthly mortgage payment in 2025 is $2,937.

Idaho Home Purchase Return on Investment

As of October 2025, Idaho’s average home value is $465,545, up 0.7% compared to last year.
The median sale price is $470,333, while the median list price is $553,267 as of September 2025.
17.2% of properties sold for over list price, while 57.3% sold under list price.
The median rent price is $1,801 as of October 2025, down $24 compared to 2024.
Idaho’s median monthly mortgage payment in 2025 is $1,769.

Illinois Home Purchase Return on Investment

As of October 2025, Illinois’ average home value is $279,761, up 3.9% compared to last year.
The median sale price is $281,333, while the median list price is $293,000 as of September 2025.
40.2% of properties sold for over list price, while 44.7% sold under list price.
The median rent price is $1,800 as of October 2025, up $50 compared to 2024.
Illinois’ median monthly mortgage payment in 2025 is $1,994.

Indiana Home Purchase Return on Investment

As of October 2025, Indiana’s average home value is $248,442, up 3.1% compared to last year.
The median sale price is $255,100, while the median list price is $276,600 as of September 2025.
22.5% of properties sold for over list price, while 54.8% sold under list price.
The median rent price is $1,412 as of October 2025, up $17 compared to 2024.
Indiana’s median monthly mortgage payment in 2025 is $1,466.

Iowa Home Purchase Return on Investment

As of October 2025, Iowa’s average home value is $227,232, up 3.8% compared to last year.
The median sale price is $228,333, while the median list price is $249,267 as of September 2025.
19.4% of properties sold for over list price, while 60.9% sold under list price.
The median rent price is $1,135 as of October 2025, down $3 compared to 2024.
Iowa’s median monthly mortgage payment in 2025 is $1,538.

Kansas Home Purchase Return on Investment

As of October 2025, Kansas’ average home value is $237,409, up 2.6% compared to last year.
The median sale price is $278,333, while the median list price is $265,300 as of September 2025.
28.3% of properties sold for over list price, while 47.9% sold under list price.
The median rent price is $1,350 as of October 2025, up $100 compared to 2024.
Kansas’ median monthly mortgage payment in 2025 is $1,749.

Kentucky Home Purchase Return on Investment

As of October 2025, Kentucky’s average home value is $225,788, up 4.1% compared to last year.
The median sale price is $255,333, while the median list price is $293,300 as of September 2025.
20.9% of properties sold for over list price, while 58.4% sold under list price.
The median rent price is $1,325 as of October 2025, down $25 compared to 2024.
Kentucky’s median monthly mortgage payment in 2025 is $1,453.

Louisiana Home Purchase Return on Investment

As of October 2025, Louisiana’s average home value is $207,909, down 0.2% compared to last year.
The median sale price is $230,300, while the median list price is $267,523 as of September 2025.
13.3% of properties sold for over list price, while 61.8% sold under list price.
The median rent price is $1,500 as of October 2025, up $5 compared to 2024.
Louisiana’s median monthly mortgage payment in 2025 is $1,650.

Maine Home Purchase Return on Investment

As of October 2025, Maine’s average home value is $401,109, down 0.2% compared to last year.
The median sale price is $403,333, while the median list price is $429,933 as of September 2025.
31.6% of properties sold for over list price, while 50.8% sold under list price.
The median rent price is $1,911 as of October 2025, up $11 compared to 2024.
Maine’s median monthly mortgage payment in 2025 is $1,796.

Maryland Home Purchase Return on Investment

As of October 2025, Maryland’s average home value is $424,997, up 1.2% compared to last year.
The median sale price is $413,835, while the median list price is $423,333 as of September 2025.
34.7% of properties sold for over list price, while 39.5% sold under list price.
The median rent price is $2,000 as of October 2025, up $100 compared to 2024.
Maryland’s median monthly mortgage payment in 2025 is $2,389.

Massachusetts Home Purchase Return on Investment

As of October 2025, Massachusetts’ average home value is $645,115, up 1.2% compared to last year.
The median sale price is $623,333, while the median list price is $699,267 as of September 2025.
46.1% of properties sold for over list price, while 42.4% sold under list price.
The median rent price is $2,900 as of October 2025, down $109 compared to 2024.
Massachusetts’ median monthly mortgage payment in 2025 is $2,755.

Michigan Home Purchase Return on Investment

As of October 2025, Michigan’s average home value is $253,279, up 3.1% compared to last year.
The median sale price is $269,267, while the median list price is $274,967 as of September 2025.
35.8% of properties sold for over list price, while 47.1% sold under list price.
The median rent price is $1,400 as of October 2025, down $50 compared to 2024.
Michigan’s median monthly mortgage payment in 2025 is $1,573.

Minnesota Home Purchase Return on Investment

As of October 2025, Minnesota’s average home value is $340,597, up 2.5% compared to last year.
The median sale price is $344,500, while the median list price is $353,267 as of September 2025.
36.5% of properties sold for over list price, while 43% sold under list price.
The median rent price is $1,600 as of October 2025, up $30 compared to 2024.
Minnesota’s median monthly mortgage payment in 2025 is $1,985.

Mississippi Home Purchase Return on Investment

As of October 2025, Mississippi’s average home value is $186,446, up 0.7% compared to last year.
The median sale price is $246,595, while the median list price is $273,550 as of September 2025.
13.7% of properties sold for over list price, while 65.4% sold under list price.
The median rent price is $1,500 as of October 2025, up $50 compared to 2024.
Mississippi’s median monthly mortgage payment in 2025 is $1,448.

Missouri Home Purchase Return on Investment

As of October 2025, Missouri’s average home value is $254,657, up 2.3% compared to last year.
The median sale price is $269,933, while the median list price is $284,633 as of September 2025.
29.9% of properties sold for over list price, while 50.3% sold under list price.
The median rent price is $1,350 as of October 2025, up $50 compared to 2024.
Missouri’s median monthly mortgage payment in 2025 is $1,589.

Montana Home Purchase Return on Investment

As of October 2025, Montana’s average home value is $457,278, up 0.8% compared to last year.
The median sale price is $482,664, while the median list price is $576,483 as of September 2025.
14.5% of properties sold for over list price, while 62.6% sold under list price.
The median rent price is $1,829 as of October 2025, up $30 compared to 2024.
Montana’s median monthly mortgage payment in 2025 is $1,878.

Nebraska Home Purchase Return on Investment

As of October 2025, Nebraska’s average home value is $269,423, up 2.9% compared to last year.
The median sale price is $276,483, while the median list price is $293,867 as of September 2025.
21.8% of properties sold for over list price, while 53% sold under list price.
The median rent price is $1,395 as of October 2025, up $70 compared to 2024.
Nebraska’s median monthly mortgage payment in 2025 is $1,764.

Nevada Home Purchase Return on Investment

As of October 2025, Nevada’s average home value is $444,019, down 0.7% compared to last year.
The median sale price is $440,667, while the median list price is $478,133 as of September 2025.
17.4% of properties sold for over list price, while 59.1% sold under list price.
The median rent price is $1,966 as of October 2025, down $34 compared to 2024.
Nevada’s median monthly mortgage payment in 2025 is $2,008.

New Hampshire Home Purchase Return on Investment

As of October 2025, New Hampshire’s average home value is $308,799, up 1.2% compared to last year.
The median sale price is $349,667, while the median list price is $395,000 as of September 2025.
13.4% of properties sold for over list price, while 59.8% sold under list price.
The median rent price is $2,000 as of October 2025, down $8 compared to 2024.
New Hampshire’s median monthly mortgage payment in 2025 is $2,399.

New Jersey Home Purchase Return on Investment

As of October 2025, New Jersey’s average home value is $559,826, up 3.0% compared to last year.
The median sale price is $532,737, while the median list price is $543,000 as of September 2025.
54.6% of properties sold for over list price, while 32.5% sold under list price.
The median rent price is $2,456 as of October 2025, down $50 compared to 2024.
New Jersey’s median monthly mortgage payment in 2025 is $2,797.

New Mexico Home Purchase Return on Investment

As of October 2025, New Mexico’s average home value is $308,799, up 1.2% compared to last year.
The median sale price is $349,667, while the median list price is $395,00 as of September 2025.
13.4% of properties sold for over list price, while 59.8% sold under list price.
The median rent price is $1,725 as of October 2025, up $25 compared to 2024.
New Mexico’s median monthly mortgage payment in 2025 is $1,628.

New York Home Purchase Return on Investment

As of October 2025, New York’s average home value is $505,608, up 3.8% compared to last year.
The median sale price is $497,500, while the median list price is $621,633 as of September 2025.
51.4% of properties sold for over list price, while 38.1% sold under list price.
The median rent price is $3,501 as of October 2025, up $101 compared to 2024.
New York’s median monthly mortgage payment in 2025 is $2,544.

North Carolina Home Purchase Return on Investment

As of October 2025, North Carolina’s average home value is $330,565, down 0.7% compared to last year.
The median sale price is $348,333, while the median list price is $399,967 as of September 2025.
19.4% of properties sold for over list price, while 62.4% sold under list price.
The median rent price is $1,800 as of October 2025, down $9 compared to 2024.
North Carolina’s median monthly mortgage payment in 2025 is $1,747.

North Dakota Home Purchase Return on Investment

As of October 2025, North Dakota’s average home value is $278,677, up 4.2% compared to last year.
The median sale price is $298,333, while the median list price is $304,967 as of September 2025.
23.2% of properties sold for over the list price, while 54% sold under the list price.
The median rent price is $1,149 as of October 2025, up $74 compared to 2024.
North Dakota’s median monthly mortgage payment in 2025 is $1,814.

Ohio Home Purchase Return on Investment

As of October 2025, Ohio’s average home value is $237,530, up 3.7% compared to last year.
The median sale price is $230,667, while the median list price is $268,872 as of September 2025.
33.4% of properties sold for over list price, while 48.5% sold under list price.
The median rent price is $1,322 as of October 2025, up $22 compared to 2024.
Ohio’s median monthly mortgage payment in 2025 is $1,563.

Oklahoma Home Purchase Return on Investment

As of October 2025, Oklahoma’s average home value is $214,563, up 1.6% compared to last year.
The median sale price is $232,833, while the median list price is $291,633 as of September 2025.
19.5% of properties sold for over list price, while 57.9% sold under list price.
The median rent price is $1,422 as of October 2025, up $22 compared to 2024.
Oklahoma’s median monthly mortgage payment in 2025 is $1,606.

Oregon Home Purchase Return on Investment

As of October 2025, Oregon’s average home value is $493,884, down 0.6% compared to last year.
The median sale price is $501,650, while the median list price is $548,266 as of September 2025.
24.9% of properties sold for over list price, while 52.2% sold under list price.
The median rent price is $1,840 as of October 2025, up $45 compared to 2024.
Oregon’s median monthly mortgage payment in 2025 is $2,234.

Pennsylvania Home Purchase Return on Investment

As of October 2025, Pennsylvania’s average home value is $278,018, up 3.1% compared to last year.
The median sale price is $285,000, while the median list price is $294,333 as of September 2025.
36.8% of properties sold for over list price, while 43.8% sold under list price.
The median rent price is $1,550 as of October 2025, up $25 compared to 2024.
Pennsylvania’s median monthly mortgage payment in 2025 is $1,775.

Rhode Island Home Purchase Return on Investment

As of October 2025, Rhode Island’s average home value is $487,363, up 2.9% compared to last year.
The median sale price is $475,667, while the median list price is $521,317 as of September 2025.
47.4% of properties sold for over list price, while 39.2% sold under list price.
The median rent price is $2,200 as of October 2025, with no change compared to 2024.
Rhode Island’s median monthly mortgage payment in 2025 is $2,262.

South Carolina Home Purchase Return on Investment

As of October 2025, Arkansas’ average home value is $299,690, down 0.7% compared to last year.
The median sale price is $319,667, while the median list price is $373,333 as of September 2025.
13% of properties sold for over list price, while 67.7% sold under list price.
The median rent price is $1,800 as of October 2025, showing no change compared to 2024.
South Carolina’s median monthly mortgage payment in 2025 is $1,627.

South Dakota Home Purchase Return on Investment

As of October 2025, South Dakota’s average home value is $311,504, up 2% compared to last year.
The median sale price is $321,667, while the median list price is $354,000 as of September 2025.
13% of properties sold for over list price, while 70.7% sold under list price.
The median rent price is $1,170 as of October 2025, down $80 compared to 2024.
South Dakota’s median monthly mortgage payment in 2025 is $1,739.

Tennessee Home Purchase Return on Investment

As of October 2025, Tennessee’s average home value is $327,001, down 0.2% compared to last year.
The median sale price is $328,667, while the median list price is $402,967 as of September 2025.
14.8% of properties sold for over list price, while 64% sold under list price.
The median rent price is $1,699 as of October 2025, down $75 compared to 2024.
Tennessee’s median monthly mortgage payment in 2025 is $1,637.

Texas Home Purchase Return on Investment

As of October 2025, Texas’s average home value is $297,000, down 2.6% compared to last year.
The median sale price is $333,333, while the median list price is $361,333 as of September 2025.
13.9% of properties sold for over list price, while 65.8% sold under list price.
The median rent price is $1,875 as of October 2025, down $15 compared to 2024.
Texas’ median monthly mortgage payment in 2025 is $2,211.

Utah Home Purchase Return on Investment

As of October 2025, Utah’s average home value is $530,173, up 2.2% compared to last year.
The median sale price is $552,102, while the median list price is $568,883 as of September 2025.
21.9% of properties sold for over list price, while 56.9% sold under list price.
The median rent price is $1,795 as of October 2025, down $5 compared to 2024.
Utah’s median monthly mortgage payment in 2025 is $2,143.

Vermont Home Purchase Return on Investment

As of October 2025, Vermont’s average home value is $387,631, down 2.0% compared to last year.
The median sale price is $388,750, while the median list price is $487,667 as of September 2025.
27.8% of properties sold for over list price, while 52.9% sold under list price.
The median rent price is $2,100 as of October 2025, with no change compared to 2024.
Vermont’s median monthly mortgage payment in 2025 is $1,893.

Virginia Home Purchase Return on Investment

As of October 2025, Virginia’s average home value is $403,170, up 1.7% compared to last year.
The median sale price is $401,900, while the median list price is $418,267 as of September 2025.
31.9% of properties sold for over list price, while 41.6% sold under list price.
The median rent price is $2,000 as of October 2025, up $5 compared to 2024.
Virginia’s median monthly mortgage payment in 2025 is $2,149.

Washington Home Purchase Return on Investment

As of October 2025, Washington, D.C’s average home value is $578,775, down 3.8% compared to last year.
The median sale price is $666,667, while the median list price is $571,300 as of September 2025.
17.7% of properties sold for over list price, while 60.2% sold under list price.
The median rent price is $2,107 as of October 2025, up $35 compared to 2024.
Washington’s median monthly mortgage payment in 2025 is $2,519.

Washington, D.C. Home Purchase Return on Investment

As of October 2025, Arkansas’ average home value is $216,341, up 0.9% compared to last year.
The median sale price is $242,500, while the median list price is $284,500 as of September 2025.
15.4% of properties sold for over list price, while 64.3% sold under list price.
The median rent price is $2,500 as of October 2025, with no change compared to 2024.
Washington, D.C.’s median monthly mortgage payment in 2025 is $3,181.

West Virginia Home Purchase Return on Investment

As of October 2025, West Virginia’s average home value is $169,372, up 1.7% compared to last year.
The median sale price is $213,400, while the median list price is $244,267 as of September 2025.
19.9% of properties sold for over list price, while 60.5% sold under list price.
The median rent price is $1,200 as of October 2025, up $100 compared to 2024.
West Virginia’s median monthly mortgage payment in 2025 is $1,272.

Wisconsin Home Purchase Return on Investment

As of October 2025, Wisconsin’s average home value is $320,446, up 4.1% compared to last year.
The median sale price is $309,667, while the median list price is $353,267 as of September 2025.
41.8% of properties sold for over list price, while 42.8% sold under list price.
The median rent price is $1,325 as of October 2025, up $25 compared to 2024.
Wisconsin’s median monthly mortgage payment in 2025 is $1,701.

Wyoming Home Purchase Return on Investment

As of October 2025, Wyoming’s average home value is $359,462, up 3.6% compared to last year.
The median sale price is $350,750, while the median list price is $431,667 as of September 2025.
10.4% of properties sold for over list price, while 58.1% sold under list price.
The median rent price is $1,320 as of October 2025, up $52 compared to 2024.
Wyoming’s median monthly mortgage payment in 2025 is $1,815.

House Flipping Returns

If you’re not interested in being a landlord but you do want to generate profit from your real estate, house flipping may be an investment model you’d want to consider. However, market volatility can make predicting ROI on a particular property difficult. Here are some helpful data points to keep in mind:

On average, house flipping investors make a 25.1% net return before expenses in Q2 2025.
The typical house flipper purchased the property for $259,700 and sold it for $325,000 in Q2 2025, generating an average profit of $65,300.
The national average ROI for a flipped house is 38.7%.
The most profitable house-flipping transactions occurred in Pittsburgh, PA, where investors saw average profit margins of 106.8% in Q2 of 2025.
Other high-profit markets in Q2 of 2025 include:
- Shreveport, LA: 104.2%
- Scranton, PA: 104.1%
- Kalamazoo, MI: 100%
- Buffalo, NY: 91.7%
In larger metros, investors saw the highest returns in New Orleans (78.1%), Baltimore (75.5%), and Memphis (70.6%) in Q2 of 2025.

Keep in mind: High returns depend on careful planning, so you can make property upgrades that buyers in your market prefer. We recommend focusing your efforts on the best home improvements for resale.

Real Estate Market Investment

To maximize returns in real estate, top investors recommend targeting markets with strong rental ROI. Pay attention to the area’s gross rental yield, rent-to-value ratios, and cash-on-cash returns.

Here’s a look at the top 25 cities in the U.S. with high-performing rental property markets:

Detroit, Michigan: Landlords saw a 21.95% gross rental yield in 2025.
Houma, Louisiana: In 2025, the average monthly rent is nearly 1% of the property value, allowing some property owners to achieve a break-even payback in less than 2 years.
Birmingham, Alabama: Market forecasts show that landlords in Jefferson County will see 13.6% returns on a 3-bedroom rental property in 2025.
Cleveland, Ohio: Property owners see a reliable 9.8% rental yield in 2025.
Toledo, Ohio: With median home prices landing around $120,000, landlords see an average yield of 10%.
Rochester, New York: The local market’s gross rental yield is 9.1% as of 2025, with a stable pool of tenants.
Memphis, Tennessee: In 2025, landlords expect an average gross rental yield of around 7.2%, with 6%–8% annual rent growth.
Youngstown, Ohio: Property owners see an average rental yield of 8%–10%, while the city’s property value has appreciated by 69% in recent years.
Columbus, Ohio: Landlords see an average rental yield of 7.9% in 2025.

If you’re interested in scaling your rental portfolio but don’t have the bandwidth, consider working with a property management company to make managing your properties easier. It can be invaluable when you’re looking to purchase rentals in different markets from where you live.

Pro tip: Consider using free online property management software as a mobile, budget-friendly alternative to traditional companies.

Real Estate Trusts & Funds

Established through the Cigar Excise Tax Extension of 1960, REITs became commonplace in the 1980s and ’90s. REITs may be attractive to new investors who want to learn how to start investing in real estate, especially those with experience in the stock market.

Did you know? Federal regulations require REITs to return 90% of their taxable income to shareholders to receive special tax treatment (26 U.S. Code § 857).

Historical Real Estate Investment Returns

Investors have historically considered real estate to be the best investment, but the market can also be volatile.

From 1928–2023, real estate’s average cash returns increased by 4.2%.
In the early 2020s, real estate’s average cash returns were at 10.2%, which was higher than the total returns in previous decades:
- In the 1990s, real estate investors earned an average cash return of 2.7%.
- In the 2000s, real estate investors earned an average of 4% cash return.
- In the 2010s, real estate investors earned an average cash return of 3.8%.

We hope the information in this report helps inform your outlook on real estate ROI. Before making an investment, we recommend consulting a trusted real estate agent or broker in your area. Don’t forget to speak with a lawyer to cover all of the basics, protect your investment, and avoid potential disputes.

Check out our overview of landlord-tenant laws in all 50 states to help keep your leasing process legally compliant.

Average ROI of Real Estate