(NewsNation) — With the difficulty rising for homeowners to sell, they are being faced with a new challenge: the rental market.
The rental market has become a direct competitor to institutional landlords due to higher mortgage rates and declining confidence from buyers. This has led sellers to decide to remove their property and place it up for rent.
“When these home sellers cannot find buyers, they face three choices: delist and wait, cut price to find market-clearing level, or convert to rental,” said Parci Labs’ Jesus Leal Trujillo.
In six U.S. housing markets, real estate investment trust companies — Invitation Homes, American Homes 4 Rent and Progress Residential — combine to make up a third of their assets in said markets. Those who amass over 50,000 properties, concentrated solely through geography.
Markets that have seen solid growth with inventory in the rental market include North Carolina, Dallas, Tampa and Atlanta.
The inventory of homes for sale has already grown consistently since 2024.
