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Homeowners struggling to sell their properties are increasingly opting to become landlords, according to Gunjan Banerji. Data shows that about 2.2% of rental listings on Zillow in November had previously been listed for sale, marking the highest proportion since late 2022 after U.S. mortgage rates surpassed 7%.
This trend highlights the impact of high mortgage rates on the property market as more homeowners shift strategies in a slower sales environment.
The current pivot among homeowners toward rental strategies underscores broader market uncertainties shaped by persistent rate pressures. Similar concerns over asset valuations were raised in the context of private-equity marks, as well as in recent discussions on the heightened risk of a significant stock-market correction, both of which reflect the ongoing recalibration across multiple sectors in response to shifting financial dynamics.