Long constrained by a lack of inventory and high prices, home buyers must now also contend with decades high inflation and rapidly rising mortgage rates.
Invitation Homes recently formed a $300 million joint venture that is targeting homes that will rent for 30 to 60 percent higher than their previous homes.
Enticed by rapidly increasing rents in the sector, investors have accounted for more than one-quarter of all single-family home sales in recent months.
Rent-to-own startup Pathway Homes plans to spend an initial $750 million acquiring houses on behalf of its customers, who will lease the properties with the option to purchase them.