84% of Investors Cite Insurance Premiums Impacting Cash Flow

A recent survey conducted by ResiClub in collaboration with LendingOne, a private real estate lender, found that 84% of single-family rental investors reported that rising home insurance premiums negatively impacted their cash flow over the past 12 months. The survey, which included responses from 216 qualified single-family investors and landlords, was fielded between August 17 and September 14, 2026. This finding highlights a significant financial challenge faced by property owners in the current market.

The survey also revealed a general increase in investor caution regarding future market activity. A substantial 65% of single-family rental investors anticipate that the average 30-year fixed mortgage rate will exceed 6.5% over the next 12 months. This figure represents a sharp increase from the 11% who held this expectation in the fourth quarter of 2025. Furthermore, 44% of landlords stated they are 'very unlikely' or 'somewhat unlikely' to purchase another investment property in the coming year, marking the highest percentage recorded since the survey's inception two years prior, and an increase from 32% in Q4 2025.

Looking ahead to 2027, investor sentiment regarding investment activity shows a mixed outlook. Only 29% of single-family rental landlords expect to increase their investment activity compared to 2026, while 56% anticipate maintaining their current level of activity, and 15% foresee a decrease. In terms of property disposition, 37% of landlords indicated they are likely to sell at least one existing property within the next 12 months, a slight decrease from the 43% who expressed similar intentions in Q4 2025. These figures suggest a period of strategic reassessment among investors.

In response to financial pressures, including increased insurance costs, a majority of landlords plan to adjust rental rates. Specifically, 59% of landlords intend to raise rents over the next 12 months. Of this group, 31% expect increases ranging from 1% to 3%. A smaller segment, only 1% of single-family rental landlords, anticipate rent increases exceeding 7.0%. These planned rent adjustments indicate landlords' efforts to mitigate the impact of rising operational expenses and maintain profitability in their rental portfolios.