How do high mortgage rates drive strong rental demand through 2029?

High mortgage rates through 2029 make homebuying less affordable for many households, causing more people to rent longer. This lock-in effect forces some potential buyers to delay purchases, driving sustained demand for diverse rental options—especially single-family homes. Consequently, rental markets stay robust with slower rent growth compared to boom years but consistent occupancy, encouraging investor focus on reliable cash-flow rental properties in a higher-rate environment.