NYC Council Members Suing to Halt Housing Ballot Measures in Last-Ditch Effort
"Single-family rental market oversaturated as frustrated home sellers turn to renting, causing drop in rents on new leases."
Institutional players in the single-family rental market, such as Invitation Homes and American Homes, are facing stiff competition from a new wave of "accidental landlords". These individuals are homeowners who, unable to sell their properties, have instead turned to renting them out, further adding to the already oversupplied rental market in select Sun Belt cities.
According to a report by the Wall Street Journal, roughly 2.3 percent of homes listed for sale this summer were converted into rental properties, with the rate reaching over 5 percent in some Sun Belt metros. This influx of rental supply has resulted in a drop in rents for new leases in cities such as Dallas, Tampa, Orlando, and Jacksonville.
The oversaturation of the rental market has caused concern for big rental investors who are facing increased competition and lower profits. As one analyst put it, "The Sun Belt is the epicenter of the rental housing market, and now it's getting flooded with new supply from accidental landlords."
While this may be good news for renters, it is a challenging situation for big investors who have heavily concentrated their portfolios in these oversupplied markets. As the rental market continues to be flooded with supply, it remains to be seen how this will impact the profitability of these investors.
https://therealdeal.com/national/2025/09/30/accidental-landlords-squeeze-big-rental-investors/