As Mortgage Rates Rise, More People Choose to Rent Single-Family Homes

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As Mortgage Rates Rise, More People Choose to Rent Single-Family Homes
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Consumers faced high real-estate prices are pressing the pause button on buying a single-family home. They are increasingly renting one instead.

SFR is “the darling of real estate,” says Mark Wolf, chief executive of AHV Communities, a company with more than $1.6 billion worth of single-family rental homes under management and development in six states including Colorado, Texas and Tennessee.

Emily Jewell says despite their good credit, she and her boyfriend weren’t approved for a mortgage because “most of our income comes from tips and side gigs not reflected on our W-2 forms.”Communities are springing up especially in the Sunbelt. Units typically feature three-bedroom homes with two bathrooms, a family room, a large fenced-in yard, and two-car garage.

Emily Jewell, a 25-year-old bartender and makeup artist in San Antonio, says she and her boyfriend, Danny Perez, were denied a mortgage for a starter home. “We have high credit ratings but most of our income comes from tips and side gigs not reflected on our W-2 forms,” she says. “Loan officers weren’t comfortable approving our application.”

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