If you’re buying or selling a home, it’s worth paying attention to the bigger picture. Right now, America is seeing a major shift: the demand for rentals is growing nearly three times faster than the rate of homeownership. For savvy buyers and sellers, that opens up a unique window to turn a personal move into a profitable strategy.

The Trends of Homeownership vs. Renting

Over the past few years, rising interest rates and limited inventory have made homeownership tougher to achieve. Meanwhile, the number of renters continues to surge. In fact, recent data shows that renter household formation is growing at triple the rate of owner-occupied households. This shift is fueling demand for quality rental properties—especially single-family homes in desirable neighborhoods.

For homebuyers, this means your future home could also double as a cash-flowing asset. For home sellers, you might want to rethink your next move: that equity could be your ticket to owning multiple doors instead of just one.

How Can You Fund These Income-Producing Deals?

Financing a rental property doesn’t have to be complex. Here are some smart ways buyers are securing deals in today’s market:

• Conventional Loans: Great for first-timers or those with strong credit and steady income.

• DSCR Loans (Debt Service Coverage Ratio): These qualify you based on property cash flow—not personal income—perfect for investors.

• HELOCs & Cash-Out Refinances: Sellers can tap existing home equity to fund a rental purchase without touching savings.

• Partners or Co-Investors: Teaming up with friends, family, or other investors can help you scale faster while reducing risk.

No matter your approach, the key is to focus on cash flow, appreciation potential, and location stability.

The Bottom Line

Rental demand isn’t slowing down—and if you’re already active in the real estate market as a buyer or seller, you’re in a great position to take advantage. Whether you hold onto your current home as a rental or reinvest the equity from a sale into multiple properties, now is the time to think beyond your next address and start building long-term wealth.