Even Landlords Struggle In This Housing Market

By: Jenny Montoya · September 21, 2023 · Reading Time: 2 minutes

Housing Market Woes

Many Americans have been trying to purchase a home, only to find themselves outbid by another buyer or unable to secure financing.

But homebuyers aren’t alone in their housing market woes. The current state of the market is proving to be just as difficult for landlords. Thanks to higher mortgage rates and a shortage of attractive properties, even America’s biggest landlords have been having trouble identifying attractive, profitable properties.

The only winners in this market seem to be those who are already positioned as they want to be.

Slim Pickings

Major real estate investment companies, such as AMH (AMH) and Invitation Homes (INVH) have been working overtime in search of listings they can potentially scoop up and turn into cash-flowing rentals. But, with mortgage rates sitting at a two-decade high and overall financing conditions tighter, the pickings are slim for properties that can help these institutional landlords hit their profit targets.

When an attractive property does hit the market, competition still remains fierce between major landlords, and private equity firms. Of course everyday Americans are also finding themselves in this challenging market…

Breaking Down the Market

That said, existing owners of single-family rentals — including AMH and Invitation Homes — remain advantaged in the current housing market. Despite their struggles to find new properties, the elevated cost of homeownership, and structural deficit of housing units in America makes renting generally more affordable than buying. And that’s good news if you’re a landlord.

Read more reporting here .

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