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

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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.

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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.

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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.

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Video: Why Is the U.S. Threatening Venezuela?

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Video: Why Is the U.S. Threatening Venezuela?

Venezuela doesn’t play a large role in the drug trade to the United States, so what is motivating the massive military buildup? Julian E. Barnes, who reports on intelligence and international security, discusses the issues with our senior writer Katrin Bennhold.

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Putin calls Trump’s peace plan a ‘starting point’ as he warns Ukraine to pull back or face ‘force’

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Putin calls Trump’s peace plan a ‘starting point’ as he warns Ukraine to pull back or face ‘force’

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Vladimir Putin on Thursday expressed interest in using President Trump’s peace plan as a negotiating departure point to end the nearly four-year war between Ukraine and Russia.

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“We need to sit down and discuss this seriously,” Putin told reporters at the end of a three-day visit to Kyrgyzstan, according to an Associated Press report. He added, “Every word matters.”

Putin described U.S. President Donald Trump’s plan as “a set of issues put forward for discussion” rather than a draft agreement.

RUSSIA WARNS IT MAY REJECT US-UKRAINE PEACE PLAN IF IT FAILS TO UPHOLD ALASKA SUMMIT ‘UNDERSTANDINGS’

Russian President Vladimir Putin gestures while speaking to Russian journalists after the summit of the Collective Security Treaty Organization (CSTO) in Bishkek, Kyrgyzstan, on Thursday, Nov. 27, 2025.  (Alexander Kazakov, Sputnik, Kremlin Pool Photo via AP)

“If Ukrainian troops withdraw from the territories they occupy, hostilities will cease. If they don’t withdraw, we will achieve this by force,” the Russian strongman said.

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Andy Barr, R-Ky., a House Foreign Affairs Committee member, told Fox News Digital the situation reinforces the need for strong American leadership. “Russia invaded Ukraine because Joe Biden was the weakest president in American history.”

Barr, a candidate for U.S. Senate in Kentucky said, “President Trump’s peace-through-strength leadership kept Putin fully contained. This war never would have happened under his watch. Trump is the peace president… the only leader who can end this war and bring stability back to Europe.”

However, Putin critics believe he is seeking to trick the U.S. and the European Union.

The former world chess champion Garry Kasparov, who predicted Putin’s jingoism and invasion of Ukraine, told the Polish international news network TVP that “Peace under Putin is unachievable for one simple reason: Putin is war — and Russia is gearing up for even more.”

Russian President Vladimir Putin welcomes U.S. President Donald Trump’s envoy Steve Witkoff during a meeting in Moscow, Russia Aug. 6, 2025.  (Sputnik/Gavriil Grigorov/Pool via Reuters)

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Kasparov has also criticized NATO, Trump and the EU for failing to defend Ukraine and evict Russia from Ukraine’s entire territory.

“We owe them everything,” Kasparov recently said about Ukraine at the Halifax International Security Forum.

MOMENTUM BUILDS IN UKRAINE PEACE PUSH, BUT EXPERTS FEAR PUTIN WON’T BUDGE

Kremlin officials have had little to say so far about the peace plan put forward last week by Trump. Putin has been recalcitrant about accepting previous Trump plans to end the war.

Putin has demanded that Ukraine completely withdraw from the entirety of Donetsk, Luhansk, Kherson and Zaporizhia regions before Russia considers any sort of “peace negotiations” — notably including areas of each of those oblasts that Russia does not occupy. He also wants to keep Ukraine from joining NATO and hosting any Western troops, allowing Moscow to gradually pull the country back into its orbit.

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Head of the Office of the President of Ukraine Andriy Yermak and U.S. Secretary of State Marco Rubio, right, talk to the press as their consultations continue at the U.S. Mission to International Organizations in Geneva, Switzerland, Sunday, Nov. 23, 2025. (Martial Trezzini/Keystone via AP)

The Institute for the Study of War on Wednesday cast doubt on Russian claims that its invasion is unstoppable as it is still struggling to capture cities in the eastern Donetsk region.

“Data on Russian forces’ rate of advance indicates that a Russian military victory in Ukraine is not inevitable, and a rapid Russian seizure of the rest of Donetsk Oblast is not imminent,” the Washington-based think tank said. “Recent Russian advances elsewhere on the front line have largely been opportunistic and exploited seasonal weather conditions.

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U.S. special envoy Steve Witkoff is set to visit Moscow next week, the Kremlin says, while U.S. Army Secretary Dan Driscoll, who in recent weeks has played a high-profile role in the peace efforts, may be heading to Kyiv.   

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The initial U.S. peace proposal was criticized for being skewed toward Russian demands, but an amended version emerged from talks in Geneva on Sunday between American and Ukrainian officials. Sidelined European leaders, fearing for their own security amid Russian aggression, are angling for deeper involvement in the process.

The Associated Press and Fox News Digital’s Efrat Lachter contributed to this report.

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EU Migration Commissioner: ‘We need the trust of the people back’

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EU Migration Commissioner Magnus Brunner sees the new Pact and Asylum and Migration on track to tackle an issue that has been feeding populism for many years. He also defends negotiating with the Taliban and initiatives to negotiate ‘return hubs’ with non-EU countries.

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