Rental home investors poised to benefit as mortgage rates, high home prices sideline buyers in 2025

AP Business Writer

LOS ANGELES (AP) — Elevated mortgage rates, rising home prices and other U.S. housing market trends that have kept many would-be homebuyers on the sidelines are likely to remain hurdles next year, driving solid demand for single-family rental houses, analysts say. Research notes from analysts at Mizuho Securities USA and Raymond James & Associates are bullish on American Homes 4 Rent and Invitation Homes, the biggest publicly traded single-family home rental REITs, or real estate investment trusts. Their outlooks boil down to a simple thesis: Many Americans will continue to have a difficult time finding a single-family home that they can afford to buy, which will make renting a house more attractive.