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.
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.
Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement.
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.