Independent single-family rental owners insulated from broader market trends

TurboTenant’s State of the Rental Industry Report for 2026 highlights a split in the rental property market and an interesting nuance: independent landlords and why many single-family rental owners are largely insulated from broader market trends. The split could be as simple as recognizing the different property types they operate.

On the one hand, small independent landlords generally rent single-family homes (SFHs). And on the other hand, large institutional investors typically operate sprawling apartment complexes. Just as the types of buildings they operate vary significantly, so does the broader market’s impact on their businesses.

TurboTenant’s report offers a glimpse into these two distinct markets that often get conflated and lumped into the same headlines.

A growing divide in the rental property market 

The State of the Rental Industry Report on independent landlords shows that they largely don’t feel the pressure from institutional investors. Per the survey, 68% of landlords reported no institutional competition. But if you were to just look at headlines, you might assume that all landlords are offering some type of concession to get tenants in the door.

Fast Company reports that, “Housing rental market concessions are at their highest level in over a decade.” But per TurboTenant’s independent survey, nearly 90% of independent landlords aren’t offering them. The answer to this difference likely lies in the types of properties these two different types of landlords operate.

Independent landlords operate under different market conditions

Smaller, mom-and-pop-type landlords and independent single-family rental owners would have a monopoly in the single-family rental market if they operated as a monolith. They don’t. Per Econofact, “small investors (those who own less than 5 properties) … own 85% of all investor-owned residential properties.” The same article states that large institutional investors own just 3% of SFHs available for rent.

With so much focus on reducing the impact of institutional investors in the SFH market through an executive order and the 21st Century ROAD to Housing Act, independent landlords, for the most part, don’t actually feel the effects of institutional investing in their markets. That’s partly because they serve a vastly different tenant base than the large corporate landlord.

People who choose to rent SFHs are often seeking a living situation that a large apartment complex can’t offer. They want more space, a yard for the dog, a garage and access to quality schools. In fact, according to a Point2Homes study, 60% of people moving into single-family homes came from apartments.

Rather than seeking to reduce days on market, independent landlords are far more interested in finding a quality tenant who will stay a long time. Susan Cheng, an independent landlord from Folsom, CA, put it succinctly: “It’s less about getting more people and more about finding the right person.” And with 16.6% of renters staying for more than 10 years, the need to quickly find new tenants isn’t as urgent.

Institutional investors confront a changing apartment market

Perhaps what’s driving much of the fear surrounding institutional landlords stems from the staggering scale of their recent purchasing. Private Equity Stakeholder reports that of the rentals private equities purchased, “almost two-thirds of the properties (63%) have been acquired since 2018.”

For added context, Blackstone has purchased more than 133,000 units since 2021. Here, the numbers come into greater focus. Pew Research Center reports that, “69.5% of properties with 25 or more units are owned by for-profit companies.” So, when we combine the fact that SFHs are largely owned by independent investors with the knowledge that larger companies tend to own larger buildings, you can see the split in how they approach vacancies.

For the institutional investor who operates hundreds of thousands of units, when a wave of new apartments hits the market (2024 saw more new apartments built than in any year since 1974), concessions act as a quick lever to attract renters and improve occupancy rates.

But on the other side of the equation, independent landlords with just a few units don’t feel these drastic swings in housing availability as institutional investors do, in part because the markets they operate in and the tenants they serve are drastically different.

In part, these differences help us explain why national headlines may feel disconnected from what individual landlords actually face. For many single-family rental owners, market conditions are often hyperlocal. So, a well-priced home in a great neighborhood is more likely to attract strong interest, even as nearby apartment operators have to offer incentives to get people in the door.

Two rental markets, one narrative

What TurboTenant’s State of the Rental Industry Report highlights is an important truth: There is no single market. Multiple markets all operate under the one umbrella of “real estate investing.” These changes within it are defined by property type, location, and renter preferences.

Of course, independent landlords aren’t shielded from economic pressure. Some 75% of landlords surveyed by TurboTenant reported rising costs but did not pass them on to their tenants. However, because of the property type they operate in, they find themselves largely insulated from concessions, oversupply and institutional competition.

In short, it matters what types of properties are examined when assessing the housing market. For now, institutional investors aren’t stepping on single-family rental owners’ toes too much yet. And if proposed legislation has its intended impact, they may remain insulated for the foreseeable future.

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