Why Only 32% of SFR Investors Plan to Sell in the Next 12 Months

Following a wave of acquisition optimism, a surprisingly low number of single‑family rental (SFR) investors plan to sell in the next 12 months. Here’s what the Q2 2025 survey reveals, and what it means for the market.

Key Takeaways

• 32% of SFR investors intend to sell a property in the next year.
• This is down from 33% in Q4 2024 and 37% in Q2 2024.
• Holding reflects confidence in long-term rental demand and appreciation.
• It tightens supply, supporting both rent and price stability.
• Investors should consider portfolio consolidation over expansion.

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Survey Results: Selling Intent Over Time

🔗 Source: ResiClub Analytics – Q2 2025 Survey

Why Investors Prefer to Hold

Investors are delaying sales for several strategic reasons:

• Stable cash flow: Rent collections remain strong despite higher costs.
• Long-term appreciation: Housing fundamentals still favor equity growth.
• Limited tax benefit: No benefit from short-term gains due to high capital gains taxes.
• Refi risk: Rising rates discourage disposals tied to refinancing.

“Our survey shows investors are locking in gains and focusing on steady income rather than chasing hot exits,” notes Matthew Neisser, CEO of LendingOne. 🔗 Source

“I know myself and my clients are buying investment properties in the U.S. with a long-term perspective. I think two of the biggest mistakes investors make are trying to time the market – waiting for the perfect combination of low prices and low rate – and panic selling when the market cycle reaches a point of rebalancing”. David Garner, General Manager of Cashflow Rentals 🔗 Source

Market Impacts of Holding Patterns

Low seller activity can influence market dynamics significantly:

• Constrained inventory: Less available supply helps maintain rent and price stability.
• Buyer competition: Fewer investor-owned homes for sale can increase competition on listings.
• Cash flow focus: With fewer disposals, landlords must emphasize efficient operations and retention.

It’s not just investors that aren’t selling. Homeowners that purchase or refinanced when mortgage rates were super-low are also held hostage right now. If moving home means paying 50% more on your mortgage, it’s just not worth it. Those sellers are holding back and waiting for rates to fall.

There is also somewhat of a psychological barrier to dropping the price on your home. A lot of sellers have been considering a sale for the past few months, but buyers are no longer prepared to pay what they’re asking. It can be difficult to overcome those initial price perceptions for some sellers, so they’re just sitting it out.

Related: First-Time Buyers Vanish as Rentals Dominate U.S. Housing

Investor Strategy: What to Do Now

• Review your portfolio: Ensure your current holdings meet yield and cash-flow targets.
• Hold for power: Use low sales volume to negotiate favorable purchase deals.
• Plan exit timing: Watch for rate declines—when rates fall, consider selling appreciation assets.
• Tax planning: Engage advisors to structure 1031 exchanges or long-term holds.

Broader Market Insight

As rates stay elevated, investors tend to favour rental income, amortization, and stability over short term profits from quick flips.

The 32% seller intent confirms a shift in sentiment—investors are adapting to a slower cycle by holding quality assets and focusing on cash flow resilience.

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