Disclaimer
We only endorse products that we truly believe in. Some of the links below may earn us some extra guac at no additional cost to you. Please pass the chips & thank you for feeding our habit.
The Minority Mindset earns commission from Fundrise via the partner links below. All opinions are the author's.
With more than 300,000 active investors and $7 billion in asset transactions, Fundrise has paid its investors over $160M in net dividends. Its simple, low-cost approach to real estate investing makes it a popular platform among smart investors.
Fundrise average returns ranged from 7.31% – 22.9% annually between 2017 and 2021, and the average client who has invested with the company for six years or more has earned 87.4% on their initial investment.
In 2022, with lower market returns across most major markets, Fundrise is outperforming public REITs and the S&P 500.
Find out exactly what returns investors have earned on Fundrise, and take a look at its historical returns data below.
What Are The Average Returns On Fundrise?
In 2021, Fundrise's average return for all clients was 22.99%.
In 2022, despite negative returns across most major markets, Fundrise is widely outperforming U.S. public REITS, the S&P 500, foreign stocks, and bonds with its (positive) 3.49% overall annual return.
Fundrise 2022 Quarter 1 overall returns:
- Income Accounts: 3.02%
- Balanced Accounts: 3.59%
- Growth Accounts: 3.60%
- Overall average return: 3.49%
In Q1 2022, Fundrise average returns of 3.49% outperformed U.S. public REITS (-5.27%) and the S&P 500 (-4.60%).
Fundrise Average Returns Vs. Public REITS And Stocks
| Year | Fundrise | Public REITs (US) | S&P 500 |
|---|---|---|---|
| 2022 (Q1) | 3.49% | -5.27% | -4.60% |
| 2021 | 22.99% | 39.88% | 28.71% |
| 2020 | 7.31% | -5.86% | 18.40% |
In 2022, for the first time since MSCI Emerging Markets Index was launched in 1988, six major market indices returned negative results, including:
- U.S.stocks (S&P 500)
- Foreign stocks (MSCI EAFE Index)
- Emerging foreign stocks (MSCI Emerging Markets Index)
- U.S. real estate investment trusts (REITs — Dow Jones U.S. Select REIT Index)
- Bonds
Fundrise outperformed all of the above major market indices in Q1 2022 with an overall average return of 3.49%.
Long-term investors know that markets rise and fall, so looking at historical averages is perhaps one of the best indicators of how well your portfolio might perform over time.
In the section below, we share the history of Fundrise average returns so that you get a better idea of how much you might earn when the economy bounces back to a more typical flow.
Historical Data On Fundrise Returns
Fundrise has a history of healthy returns for the past several years, ranging from 7.31% – 22.9% since 2017 (not including 2022).
However, when investors continue allowing their portfolios to grow with Fundrise, reinvesting all their portfolio earnings over time, they tend to earn far more than the averages listed above.
According to its Real-Time Returns Of Client Accounts, the average return on investment across all Fundrise’s 396,00+ client accounts is much greater over time than in one given year.
Fundrise average returns over time:
- Average return after 1 year: 11.8%
- Average return after 2 years: 20.6%
- Average return after 3 years: 34.9%
- Average return after 4 years: 49.9%
- Average return after 5 years: 59.3%
- Average return after 6 years: 87.4%
Keep in mind that when we’re looking at average client returns, we’re looking at numbers that include all clients — whether they’ve been growing their portfolios for one day or ten years. Taking a closer look at the historical data shows a bigger story.
One thing all Fundrise investors have in common is that their returns are strongly tied to the number of years they’ve been investing on the platform.
Typically, the longer you invest, the greater your returns. New investors should be aware that it takes time for their money to grow and achieve higher returns.
Additionally, returns vary depending on whether your Fundrise account focuses on income, growth, or a balance of the two.
Making The Most Of Your Returns
On Fundrise, your returns largely rely on your investing approach.
Historically, income-focused accounts show higher returns during the first year than growth-focused accounts.
However, growth accounts start to ramp up their earnings in the second year and begin outperforming Income accounts by the end of the third year.
Like with many investments, your risk tolerance will likely determine how much you earn, as higher-risk investments often produce higher rewards.
Fundrise Expected Annual Returns According To Account Type
In general, Fundrise advises investors to expect the following types of returns from each strategy:
Fixed Income strategy (lower risk): 4-8% total annualized return.
The Fixed Income strategy is a lower-risk approach that provides real estate-backed loans and similar financing. Its primary expected source of returns is interest income.
Core Plus strategy (moderate risk): 6 – 10% total annualized return.
The Core Plus strategy is a moderate-risk approach in which your investments acquire and operate stabilized, cash-flow real estate. Its primary expected source of returns is rental income with some growth.
Value Add strategy (higher risk): 8 – 12% total annualized return.
The Value Add strategy is a higher-risk approach in which your investments acquire real estate that needs improvements. Its primary expected source of returns is growth with some rental income.
Opportunistic strategy (very high risk): 10%+ total annualized return.
The Opportunistic strategy is a very high-risk approach in which your investments redevelop real estate, often from the ground up. Its primary expected source of returns is growth with some rental income.
To make the most of Fundrise, we recommend that new investors keep their risks low as they learn more about the platform and overall investing.
Fundrise provides an auto-invest feature that allows you to contribute a specified amount at regular intervals (such as once a month or every other week), which we recommend taking advantage of!
Fundrise Average Returns Show Steady Growth Over Time
Historically, Fundrise has produced excellent overall returns for its clients, ranging from 7.31% – 22.9% between 2017 and 2021.
This year’s returns of 3.49% reflect an overall drop in all major markets, and Fundrise is currently outperforming more traditional investments such as stocks and public REITs.
Over time, Fundrise annual returns have proven successful for its clients, producing average returns of 87.4% over six years.
The type of account you choose to invest in on Fundrise will influence your returns, as income-based accounts tend to earn more in the first year, but growth-based accounts earn more by the third year and beyond.
In a recent Minority Mindset poll, 48% of money-minded people said they invest in real estate, and 14% of them use Fundrise.
We think Fundrise is a good choice for real-estate-minded investors and for people who want to invest but don’t have the time to research every property and manage a team of people.
