Homes in upper middle class neighborhoods going up for rent

Either bought by a big corporation to rent or individual owner can't afford it anymore and doesn't want to lose that low mortgage rate so renting versus selling.

The rent seems cheap for that particular house. But yeah. This bothers me a lot and I wish average people would worry about this more than hot button social justice issues. Homeowners can’t compete with cash offers from investors.

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Seems to be happening a lot in the Austin area, even in the suburbs. Nearly half the homes I save on Zillow sell and are up for rent a week later. You'll own nothing and be happy

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I know HOA's aren't popular with a lot of people, but my neighborhood's HOA is changing the covenants to limit rental homes at 10% of the total houses and ban short-term rentals. We are right about 10% now and I have no doubt if we don't do something they would be 20+% in a few years.

Need stronger HOAs

My sister and BIL were trying to rent their house for $14k a month.

They figured some corporate transplant would get the company to pay but no dice after several months sitting. Austin seems to be cooling for that.

Back on the market now for $2.5.

Well for that house you listed it looks like seller bought it in beginning of 2019 for 305k. More than likely refinanced in 20/21 for say 3% rate. Assuming they only put 5% down their note is still currently under $2000.

Looks like they listed it in Feb of this year and had a few offers fall through. Instead of dropping the price they took it off market at end of April and listed for rent now at $3000. Which is less than what a prospective buyer would be paying on a note (note would be closer to $4000 if they only put 5% down). So seller now makes approx $12,000 a year off rent and will more than likely have a nice tax write off on the rental property.

I definitely see this happening more than ever with these sellers who have rates in the 2’s and 3’s.

Individuals are moving but don't want to let go of their low IR, so they rent their home instead of selling

I'm considering doing it

This doesn’t seem uncommon to me in DFW.

Low rates and if you can afford to rent your first house why not?

It’s because the price to buy doesn’t make sense for a lot of people.

That house sold for $305k back in 2019 when they probably would have got a 3.5% rate. Their principal and interest payment would only be about $1200 a month.

That same house they tried to sell for $500k with maybe a 6.5% would be $3100 for principal and interest. It’s insane

i wouldn't call that an upper-middle class neighborhood