Institutional single-family rental operators have significantly reduced their purchases since the pandemic housing boom cooled in spring 2022. This slowdown is attributed to rising home prices, stagnant rent growth, increased holding costs, and a shift in capital markets. Consequently, many institutional landlords have transitioned to being net sellers. In the second quarter of 2024, eight major institutional landlords collectively sold 593 homes, a number that escalated to 3,011 sales in the second quarter of 2025. This acceleration in net selling is driven by several factors.A principal reason is the federal efforts to ban institutional homebuying, which created market uncertainty. While an updated bill allows exemptions for build-to-rent and fix-to-own strategies, earlier proposals caused many firms to pause or cancel deals. Additionally, VineBrook Homes, a significant institutional landlord, is undergoing a large portfolio selloff to address liquidity issues and meet upcoming debt obligations. VineBrook is also strategically shifting capital towards newer homes in build-to-rent communities.The ongoing difficulty in finding attractive investment yields also contributes to subdued institutional purchasing. After accounting for acquisition costs, renovation expenses, and capital expenses, the projected returns are not meeting investor expectations. Furthermore, build-to-rent deliveries have decreased from their peak during the pandemic housing boom. Invitation Homes, a major player, has experienced a sharp decline in its pipeline of homes to be purchased from third-party homebuilders, partly due to its cost of capital. The company is also increasingly building in-house, potentially reducing its reliance on external pipelines.