Investors now dumping rental homes at a loss

We’re seeing a new trend on the U.S. Housing Market.

Investors selling at losses.

In this case, the investor bought for $377,000 at the peak in 2022.

It looks like they rented it out for a couple years around $2,100/month.

Fast forward to 2026, they’re listing at a $32,000 loss to their original purhcase ($345k).

And accounting for realtor fees and closing costs, this loss could be closer to $50,000.

The reason this is happening is because the economics of owning single-family rentals no longer make sense, especially in Sun Belt markets like Nashville.

Rent growth is flat, operating costs are rising, and treasury yields are higher than cap rates.

Which is causing investors to not only stop buying, but to also start selling (at losses).

I ran the math here and to get a 5% unlevered cap rate on this rental, you’d need to offer $275k. Indicating more downside could be coming.

Analyze listings now at: https://reventure.app/listingtool/3YQXIUYY3X

1) The economics of buying single-family rental investment properties no longer makes sense.

To buy this property with a mortgage, at 20% down, your monthly payment would be $1,870/month just on P&I.

Add in taxes, insurance, maintenance, management, and vacancy, and your…

— Nick Gerli (@nickgerli1) November 9, 2026

3) Reventure doesn't think a 35% drop in list price is required to sell this property, as a primary buyer would likely to step and snatch it up well before it got to that point.

However, the math calculation shows just how much the housing market has changed over investors over…

— Nick Gerli (@nickgerli1) November 9, 2026

5) In a market like Nashville, many investors are beginning to sell, especially those who bought near peak pricing in 2022-2023.

This is resulting in an avalanche of housing supply hitting the market, with Nashville's metro now eclipsing 12,000 listings.

The highest going back…

— Nick Gerli (@nickgerli1) November 9, 2026