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Do real estate sales trends and the rental market correlate? The short answer: yes, they often do—and if you’re a real estate investor, it’s important to pay attention to both. Shifts in mortgage rates, housing supply, and buyer behavior can ripple across both the sales and rental markets. Here are a few trends I’m seeing right now that illustrate this connection.
As of this writing, our property management company—which manages over 600 doors—is seeing an average of just 18 days on the market for our rental properties. That’s the lowest we’ve seen in over two years.
So, what’s driving this? In my professional opinion, high mortgage rates are playing a major role. For many, it’s currently cheaper to rent a single-family home than to buy one. And as we enter peak moving season, more people are choosing to rent rather than purchase. It’s a trend we’re watching closely—and it seems to be accelerating.
Looking back a few years, when mortgage rates were historically low and the sales market was booming, many landlords opted to sell and cash out of their investments. That’s become far less common today—especially for those locked into a 3% mortgage on their rental properties. We're also seeing fewer new investors entering the rental market. With rates now around 7%, it’s harder to make the numbers work on new investment purchases.
What does this mean for you?
Whether you’re thinking about holding, buying, or renting out a property, now is a smart time to take a close look at your investment strategy. The market is shifting—and we’re here to help you stay ahead of it.