Connect with us

World

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

Published

on

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

LOS ANGELES (AP) — Rental homes will remain an attractive option next year to would-be homebuyers sidelined by high mortgage rates and rising home prices, analysts say.

American Homes 4 Rent and Invitation Homes are two big real estate investment trusts poised to benefit from the trend, say analysts at Mizuho Securities USA and Raymond James & Associates.

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 an attractive alternative.

It starts with mortgage rates. While the average rate on a 30-year mortgage fell to a two-year low of 6.08% in late September, it’s been mostly rising since then, echoing moves in the 10-year Treasury yield, which lenders use as a guide to pricing home loans.

The yield, which has hovered around 4.4% this week, surged after the presidential election, reflecting expectations among investors that President-elect Donald Trump’s proposed economic policies may widen the federal deficit and crank up inflation.

Advertisement

Analysts at Raymond James and Associates say they see mortgage rates remaining “higher for longer,” given the outcome of the election. Last week, they reiterated their “Outperform” ratings on American Homes 4 Rent and Invitation Homes, noting “we are increasingly confident in the longer-term outlook for single-family rental fundamentals and the industry’s growth prospects.”

They also believe the two companies will continue to benefit from “outsized demographic demand for suburban homes,” and the monthly payment gap between renting and owning a home, which they estimate can be as much as 30% less to rent.

Analysts at Mizuho also expect that homeownership affordability hurdles will maintain “a supportive backdrop” and stoke demand for rental houses, helping American Homes 4 Rent and Invitation Homes to maintain their tenant retention rates.

The companies are averaging higher new and renewal tenant lease rates when compared to several of the largest U.S. apartment owners, including AvalonBay, Equity Residential and Camden Property Trust, according to Mizuho. It has an “Outperform” rating on American Homes 4 Rent and a “Neutral” rating on Invitation Homes.

Shares in Invitation Homes are down 1.2% so far this year, while American Homes 4 Rent is up 4.4%. That’s well below the S&P 500’s 24% gain in the same period.

Advertisement

While individual homeowners and mom-and-pop investors still account for the vast majority of single-family rental homes, homebuilders have stepped up construction of new houses planned for rental communities.

In the third quarter, builders broke ground on about 24,000 single-family homes slated to become rentals. That’s up from 17,000 a year earlier. In the second quarter, single-family rental starts climbed to 25,000, the highest quarterly total going back to at least 1990, according to an analysis of U.S. Census data by the National Association of Home Builders.

Advertisement

World

One week into Iran war, the dangers for the US and Trump multiply

Published

on

One week into Iran war, the dangers for the US and Trump multiply
One week into the U.S.-Israeli war against Iran that has plunged the Middle East into turmoil, President Donald Trump faces a growing list of risks and challenges that raise questions about whether he will be able to translate military successes into a clear geopolitical win.
Continue Reading

World

Iran warns European countries will be ‘legitimate targets’ if they join conflict

Published

on

Iran warns European countries will be ‘legitimate targets’ if they join conflict

NEWYou can now listen to Fox News articles!

An Iranian official warned that any European countries that enter the conflict against Iran will become “legitimate targets” for Tehran’s retaliation. 

Iran’s Deputy Foreign Minister Majid Takht-Ravanchi made the remark to France24 as Iranian President Masoud Pezeshkian on Saturday apologized to neighboring countries that have been attacked by the regime. 

“We have already informed the Europeans and everybody else that they should be careful not to be involved in this war of aggression against Iran,” Takht-Ravanchi told the network. “If they help, I’m not trying to name any country, but if any country joins in the aggression against Iran, joins America and Israel in the aggression against Iran, definitely they will be also the legitimate targets for Iranian retaliation.” 

“This war has imposed on us, and we will continue to defend ourselves to the best of our abilities,” he added. “We have an obligation to defend our people and that is what exactly we are doing.”

Advertisement

Then-Iranian Ambassador to the United Nations Majid Takht-Ravanchi speaks to the media outside Security Council chambers at the U.N. headquarters in New York, on June 24, 2019.  (Shannon Stapleton/Reuters)

Takht-Ravanchi also claimed Iran was “negotiating in good faith” in talks with the U.S. about its nuclear program, before America launched Operation Epic Fury and Israel began Operation Roaring Lion on Feb. 28. 

“We are sincere. We are sincere in our endeavor to arrive at a peaceful conclusion of this issue,” he told France24. 

AFTER THE STRIKES, HOW WOULD THE US SECURE IRAN’S ENRICHED URANIUM?

A group of men inspect the ruins of a police station struck during the U.S.–Israeli military campaign in Tehran, Iran, on Tuesday, March 3, 2026. (Vahid Salemi/AP)

Advertisement

Pezeshkian said Saturday that any future attacks coming out of Iran would only be in response to attacks against the country. 

“I should apologize to the neighboring countries that were attacked by Iran, on my own behalf,” he said, according to The Associated Press. “From now on, they should not attack neighboring countries or fire missiles at them, unless we are attacked by those countries. I think we should solve this through diplomacy.”

Damage is seen in Bnei Brak, Israel, on March 3, 2026, following an Iranian missile barrage. (Nir Elias/Reuters)

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

Pezeshkian made the apology during a prerecorded televised speech on Saturday after Iran launched repeated strikes on Bahrain, Saudi Arabia, the United Arab Emirates, Qatar and Oman. 

Advertisement

Despite the vow, the United Arab Emirates (UAE) Ministry of Defense said on Saturday that the country’s air defense systems intercepted 16 ballistic missiles, 15 of which were destroyed while one fell into the sea.

Fox News Digital’s Elizabeth Pritchett and The Associated Press contributed to this report. 

Related Article

Gulf states intercept hundreds of Iranian missiles and drones, issue joint condemnation with US
Advertisement
Continue Reading

World

Israel kills father, daughter in Gaza as genocide continues amid wider war

Published

on

Israel kills father, daughter in Gaza as genocide continues amid wider war

A father and his daughter have been killed in an Israeli drone attack in central Khan Younis, southern Gaza, as Palestinians continue to suffer amid worldwide attention on the United States-Israeli war on Iran.

The two were killed early on Saturday. In a separate attack later in the day in Khan Younis, another person was killed and a young girl wounded, according to Al Jazeera correspondents on the ground.

Recommended Stories

list of 4 itemsend of list

Israeli forces continue carrying out air strikes, artillery shelling, and naval bombardment on Gaza on a daily basis, despite an October 11 “ceasefire” as Israel continues its ongoing genocide.

Advertisement

Suffering in Gaza and the occupied West Bank remains acute as the world focuses on the US-Israeli bombardment of Iran.

In the past 48 hours, two additional people have been wounded, the Palestinian Ministry of Health said.

Israeli army-affiliated militias, meanwhile, have advanced east of Gaza City, with heavy gunfire reported in the area. Initial reports also stated a member of the Palestinian police was abducted.

Israeli warplanes also struck several locations east of the Tuffah neighbourhood, near Gaza City, while the Israeli navy fired heavy machineguns and shells towards the coast of Gaza City, Palestinian news agency Wafa reported.

The Rafah border crossing, meanwhile, remains closed. Israel had shut it amid its attacks on Iran.

Advertisement

The Rafah crossing, located on Gaza’s southern border, had reopened only last month allowing a limited number of Palestinians to leave for the first time in months, including patients in urgent need of medical care. Thousands remain blocked from travelling for treatment.

The Karem Abu Salem crossing, also known to Israelis as Kerem Shalom, is partially open for the entry of humanitarian aid only, under strict restrictions.

Nearly all of Gaza’s population of more than two million people was displaced during Israel’s war on the territory, and the enclave remains heavily dependent on humanitarian assistance.

In a February report, Human Rights Watch said Israeli restrictions had contributed to shortages of medicine, reconstruction materials, food and water inside the Strip.

Since the ceasefire in Gaza, 640 Palestinians have been killed and at least 1,700 wounded, according to the Health Ministry. At least 72,123 Palestinians have been killed since October 2023, while 171,805 people have been injured.

Advertisement

Meanwhile, in the occupied West Bank, the Palestinian Red Crescent Society reported its teams in Hebron are treating a Palestinian injured by live fire near the illegal Karmei Tzur settlement, built on Palestinian land north of Hebron.

Three Palestinians were also injured on Saturday after being physically assaulted by Israeli settlers in the Ras al-Ahmar area, south of Tubas, Wafa reported. Medical sources at the Palestinian Red Crescent Society said their teams responded to three people with injuries.

Israeli forces also conducted raids in the towns of Qaffin and Kafr al-Labad, north of Tulkarem, early on Saturday, Wafa said.

A Palestinian man was also injured after being assaulted by Israeli soldiers near the village of Azmut, east of the occupied West Bank city of Nablus.

Palestinians have faced a wave of intensified Israeli military and settler violence across the West Bank since the war on Gaza began in October 2023.

Advertisement

At least 1,094 Palestinians have been killed by Israeli troops and settlers in the West Bank since October 2023, according to the latest United Nations figures.

Continue Reading
Advertisement

Trending