Rising insurance premiums, elevated borrowing costs, and tighter cash flow are prompting single-family rental (SFR) investors to take a more cautious approach to their portfolios, according to the Q3 2026 Lending One-ResiClub SFR Investor Survey.
The survey, which collected responses from 216 single-family rental investors and landlords between August 17 and September 14, found that 84% of respondents experienced cash flow impacts from rising home insurance premiums over the past 12 months. Increasing operating expenses are adding pressure as investors navigate a challenging financing environment.
Mortgage rate expectations are also influencing investment decisions. About 65% of respondents expect average 30-year fixed mortgage rates to remain above 6.5% over the next 12 months. Meanwhile, 44% said they are unlikely to purchase another investment property during that period, the highest share recorded since the survey began two years ago.
Looking ahead to 2027, 56% of landlords expect to maintain their current investment activity, while 29% anticipate increasing it and 15% plan to scale back. Additionally, 37% expect to sell at least one existing property within the next year.
Rent increases remain a potential strategy for managing higher expenses. Nearly 59% of respondents plan to raise rents over the next 12 months, with 31% expecting increases of 1% to 3%. Only 1% anticipate rent hikes exceeding 7%.
The findings highlight the growing financial pressures facing SFR operators as insurance costs and borrowing expenses weigh on cash flow. With acquisition plans becoming more cautious and rent increases generally expected to remain modest, investors are balancing portfolio growth against the need to preserve profitability in an evolving rental housing market.
Source: Fast Company / ResiClub
