Reveals Advantages for Today’s Investors
by Amy Daniel
While today’s homebuyers are stressed out, time strapped and overspending, investors continue to take a more measured approach. They’re waiting, watching and positioning themselves for what’s next.
ServiceLink recently unveiled its 2026 State of Homebuying Report that captures the perspectives of more than 1,500 U.S. residents who purchased a home in the last two years. Complementing this, we surveyed more than 500 loan officers, who have at least three years’ experience in the field, to get their take on today’s market.
For investors, the findings highlight both the advantages and challenges they face in today’s high-priced real estate landscape. Like today’s buyers, investors are craving clear communication, simplicity, affordability and technology-driven efficiency that are vital for their long-term growth. The report also uncovered benefits that investors can utilize to market their rental properties to those who could be on the fence between renting and buying.
Affordability is Reshaping Investor Strategy
Affordability continues to be a hot topic across the industry with great impact on investors. Seven in 10 recent homebuyers report going over budget to purchase their home and 10% spent at least $80,000 more than they planned to simply secure the purchase. Loan officers said the degree to which today’s homebuyers are overextending themselves financially is a huge red flag, at a time when the median single-family home price tag grew to $414,900 in late 2025. For investors, this reinforces the importance of discipline. But there still are the occasional deals to be had, so it’s important to keep your eyes open.
We also are starting to see some shifts in the market, where prices are coming down in some areas and adjustments are being made. As they overextend themselves, today’s buyers are struggling to make payments. The 2026 State of Homebuying Report found that half of Gen Z and 44% of millennial respondents were at risk of missing at least one mortgage payment over the last two years.
As foreclosure continues to climb, there may be more opportunities later this year for investors to find good deals. In today’s market, it pays to know exactly what you’re buying, asking yourself “does it check all the right boxes?” and staying focused on the bottom-line, rather than chasing deals for the sake of growth.
The Renter Advantage
As many of today’s buyers are financially overextending themselves and missing payments, in some ways, renters have an advantage. With a mortgage, your bill doesn’t always stay the same, taxes go up, sometimes insurance goes up, and, voila, your mortgage payment goes up unexpectedly. Then there are the additional costs, like water and gas bills that fluctuate.
For renters, especially with all-inclusive packages, the rate is set for a given time frame. That provides a sense of stability and is something investors can tout to potential renters as an advantage over buying. That said, if your rental package is set up so that the renter is paying ancillary bills, like utilities, investors should keep their eyes peeled. Like today’s buyers, are your renters making a choice between which bills to pay? Does that mean they might skip a rental payment to pay another bill? Here, communication is key.
Investors need to be savvy and keep communication open with their renters, so you stay in the know about their situation.
No Emotional Attachment
One of the biggest advantages investors have in today’s market is the lack of emotional attachment to properties they buy. Many individual homebuyers are stretching budgets and making tough compromises: 21% of respondents said they bought a home with a smaller yard than desired, and another 21% said they bought a home with fewer bedrooms than desired. Investors approach buying as a transaction. There is no emotional weight tied to a floor plan or a long-term vision of a home. Instead, the focus is on whether the numbers work and whether it fits into their strategy. The difference in mindset creates flexibility that can be advantageous to investors, who can move faster, assess risk more clearly and take advantage of opportunities.
The Renter Advantage
Like investors, renters benefit from the fact that renting requires far less emotional investment than buying. Buying a home is a long-term decision with big commitment, whereas renters can make practical decisions based on what works for their current life. If it doesn’t work, there’s less risk, and they can make a move once their lease is up.
Why Simplicity and Clear Communication Matter
Buying a single-family home, whether you’re an investor or a traditional buyer, can be very stressful. When diving into the psychology of today’s homebuyers, the 2026 State of Homebuying Report found that today’s buyers are extremely stressed. What’s causing the stress? 19% said the home price offer and negotiation cause the most stress, while 15% said understanding all of the paperwork and 12% said the closing process.
In this case, investors and today’s homebuyers are craving the same thing – a simplified, easy process that gets you to the closing table without repeated hiccups. This is where lenders have an opportunity to streamline the process, provide clear and transparent communication and simplify things for their buyers. Increasing technology offerings is a great place to start.
The Rental Advantage
The list of stressors that can make the homebuying process overwhelming ranges from home price offer and negotiations to finding the right lender. Yes, investors, likely feel these, too. But this is another opportunity to market the advantages of renting to those who are on the fence. Sure, there are still stressors when it comes to renting. Am I overspending? Is this the right move for me? But the top nine stressors listed from today’s buyers aren’t a factor if you’re renting. Renting provides greater flexibility. You’re not marrying a home when you’re renting it.
The Competitive Edge of the Digital Process
In the 2026 State of Homebuying Report, recent buyers said they see the advantage of increased technology usage throughout the process. They liked that it saves time (57%), is convenient to use (52%), provides them with the flexibility to make progress on their own schedule (43%), helps them stay informed throughout the process (41%), along with the cost savings (33%) and transparency (32%) it provides.
For investors, the benefits of increased technology are nearly the same. And, like today’s buyers, they too often prefer closing at the location of their choosing. Remote online notarization (RON) is a gateway to a simplified process for investors and buyers alike. We work with investors who travel frequently and are often out of town when it comes to closing time. RON signings are a great option, where you truly can close from wherever you are, as long as you have the appropriate identification on you. Traveling overseas? It can still be done on time. There are so many opportunities for investors to take advantage of with increased technology use.
The Rental Advantage
For renters, the digital experience can be sold as a huge bonus. No matter what the issue, from paying your rent to filling out a maintenance request, there truly is an app for that. There’s no need to pick up the phone and call someone and wait on hold for an hour. A technology focused rental experience truly is beneficial to both renters and investors alike.
SIDEBAR
Pets rule
Everyone knows that pups and pets reign supreme. Nine out of 10 recent homebuyers said they considered their pets needs when buying a home — including buying a home with a fenced in yard, in a walkable community and with specific flooring. Investors, this is something to take note of when buying a property. People are much more attached to their pets today and keep them in mind no matter where they’re moving — owned or rented.
