Investors are cautiously optimistic about the state of the market, but interest rates and insurance costs remain a concern
Aug. 8, 2024
Image: Kseniya Ragozina / stock.adobe.com
Investors have mixed opinions on where the single-family rental market is headed in the next year.
The single-family rental market has been growing over the past several quarters, but landlords remain cautiously optimistic about where the market is headed. A report from the ResiClub blog and real estate investment lender LendingOne shows investors expect a fairly stable market through the next year and plan to act accordingly. About 60% of landlords say they intend to purchase at least one investment property over the next year, while 39% plan to sell one. Additionally, 72% of investors anticipate higher home prices in the next year, but just 31% expect increases over 4%. However, some larger concerns loom on the horizon, such as the cost of home insurance and rising interest rates.
The survey reveals that most single-family landlords aren’t super bullish or bearish; instead, they are cautiously optimistic, expecting a balanced single-family rental market over the next 12 months. Many plan to buy properties, raise rents, and anticipate rising home prices and falling interest rates. However, they only expect a mild increase in rents and home prices, as well as just a slight drop in interest rates. Home insurance costs, which rose over 10.0% in 25 states last year, remains an area of concern.
