What High Interest Rates Mean for Real Estate Investors in 2025.

What High Interest Rates Mean for Real Estate Investors in 2025
By Richard Maize

Real estate investing in 2025 is not for the faint of heart. With interest rates still holding steady at elevated levels, many investors are wondering: is now the time to buy, hold, or wait it out?

I’ve seen a lot of market cycles in my career, and one thing remains true—uncertainty creates opportunity. But only for those who are ready.

The Impact of High Rates

Higher borrowing costs change the math on every deal. Cash flow margins shrink, cap rates adjust, and buyers become more cautious. But this environment also shakes out the short-term players, giving seasoned investors a clearer field.

How to Adapt

If you're looking to invest right now, here are a few strategies I recommend:

• Get creative with financing: Look beyond traditional mortgages. Consider seller financing, subject-to deals, or portfolio lenders with more flexibility.

• Focus on value-add: Properties with room for improvement can offset higher debt costs through increased future equity or rents.

• Be patient but ready: Great deals don’t always come in bulk during high-rate periods, but when they do, you need to move fast.

Where I’m Looking

Personally, I’m keeping an eye on multifamily units in markets where rents are still rising and inventory is tight. I’m also watching distressed commercial assets that may soon hit the market.

Final Thoughts
The 2025 housing market isn’t easy, but that’s not a bad thing. It’s the perfect time to lean on experience, play the long game, and avoid the panic.

I always say—real estate rewards the patient, prepared, and persistent. That’s how I built my portfolio, and it’s how I still approach every investment.

— Richard Maize