"According to Zillow Research, 2.3% of homes listed for rent on its platform in October had previously been listed for sale. Only once in Zillow's nearly six-year tracking has the share been higher."
"Zillow senior economist Kara Ng called the trend 'choice-driven rather than shock-driven.' Sellers rarely face forced sales, and just 4.1% of homes carry values below their last sale price."
"The lock-in effect, combined with longer listing times and more price cuts in certain markets, keeps inventory tight for buyers while adding single-family homes to the rental pool."
"Single-family rents rose just 2.6% year-over-year recently, the slowest pace in Zillow's records. It's going to get worse. Zillow forecasts growth will slow further to 1.8% for the year - among the slowest rates on record."
Home prices are elevated and mortgage rates are around 6%, leading many sellers to withdraw listings and rent instead. Zillow reports that 2.3% of homes listed for rent had previously been for sale, matching a record high. The trend is particularly strong in the Sun Belt and Western markets, with Denver leading at 4.9%. Sellers are not facing forced sales, and many refuse lower offers. The rental market is tightening, with single-family rents rising slowly, and Zillow forecasts further slowdown in rent growth.
Read at 24/7 Wall St.
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