Rental Market Thrives as US Housing Crisis Deepens: What’s Behind the Surge?

The Rental Market’s Golden Opportunity: How Institutional Investors Are Profiting from Affordability Crisis

The rental market is thriving in the US with soaring prices and high mortgage rates making it difficult for people to afford homes, according to the published article of FORTUNE. According to Laurel Durkay, the head of global listed real assets at Morgan Stanley the affordability crisis is benefiting the rental market particularly for institutional investors. These landlords are buying up single-family homes and renting them out providing a steady income stream. As the housing market continues to struggle institutional landlords are reaping the benefits. They are buying up homes in bulk and renting them out providing a steady income stream.

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Soaring Prices and High Mortgage Rates: How the Rental Market is Benefiting from the US Housing Market Struggle

In some areas such as Atlanta, Wall Street owns more than 4% of all single-family homes which can contribute to rising housing costs. Meanwhile, homebuyers are struggling to make ends meet with many opting to rent instead of buy. The situation is not without its benefits however. Homebuilders and investors are seeing a surge in demand for rentals which can lead to increased profits. Additionally, renters are able to live in the homes they want even if they can’t afford to buy. However, the situation also highlights the struggles faced by many Americans who are unable to achieve their dream of homeownership. As Durkay noted owning your own home is a core tenet of the American Dream but in the present environment it’s not so cut-and-dried.

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