By Pamela McNab-Syvertson, Verandah Properties
“Mortgage rates used to be this high. People still bought homes.”
That observation misses an important part of the calculation: the price of the home relative to the buyer’s income.
A familiar interest rate can produce a very unfamiliar monthly payment when the amount being borrowed is much larger.
That helps explain why some households remain renters—and why that does not necessarily translate into higher rents for landlords.
The affordability problem starts with the price
Harvard’s Joint Center for Housing Studies found that national median single-family home prices increased 48% between 2019 and 2024, while median household income increased 22%.
Its 2026 report found that the median existing single-family sales price in 2025 remained nearly five times median household income.
Prices and incomes have not moved together. Buyers must finance the gap, bring a larger down payment, purchase less home, or postpone buying.
What happened during the pandemic?
The broad U.S. money supply, measured by M2, increased from approximately $15.5 trillion in February 2020 to $21.8 trillion in March 2022—an increase of about 41%.
That was an enormous expansion, but describing it simply as “printing money” leaves out how it happened. Federal Reserve research links pandemic deposit growth to several factors, including asset purchases, fiscal transfers, business borrowing, and increased saving.
Meanwhile, inexpensive mortgages increased purchasing power, and remote work changed housing demand. These forces met a housing supply that could not adjust immediately.
It would be too simplistic to call all of the resulting appreciation artificial. Research from the San Francisco Fed found that remote work contributed substantially to housing-price growth, including growth after adjusting for inflation.
The important distinction is that a higher dollar value does not necessarily mean a home became proportionately better or more affordable. And slower inflation does not mean prices return to their old levels.
The same interest rate can consume more of a family’s income
Consider this illustration. These are hypothetical households, not historical market averages. Both purchases use a 20% down payment and a 30-year fixed mortgage.
| Lower-price example | Higher-price example | |
|---|---|---|
| Home price | $300,000 | $450,000 |
| Annual household income | $75,000 | $95,000 |
| Mortgage rate | 6.5% | 6.5% |
| Down payment | $60,000 | $90,000 |
| Monthly principal and interest | $1,517 | $2,275 |
| Share of gross monthly income | 24.3% | 28.7% |
The interest rate has not changed. Income has increased. Yet the mortgage payment consumes a larger share of income—and the buyer must find another $30,000 for the down payment.
Property taxes, insurance, HOA charges, and maintenance come on top of those payments.
This is why saying “rates used to be higher” does not settle today’s affordability question.
Why some buyers are waiting
There is local evidence of hesitation. In its July 2026 market narrative, the Orlando Regional REALTOR® Association reported that 64% of respondents to its midyear Realtor survey said buyers were waiting for rates to decline, while 53% reported buyers shopping at lower price points.
Those are percentages of surveyed Realtors, not percentages of all buyers.
August’s closed sales also fell from July, although ORRA described a seasonal slowdown. One monthly decline should not be treated as proof of a continuing downturn.
My outlook is conditional: if financing stays expensive and prices do not adjust enough relative to incomes, purchasing power will remain constrained. Some households will continue renting, and sellers may face a smaller pool of financially comfortable buyers at their desired price.
Where accidental landlords enter the picture
An owner who cannot obtain the desired sale price may decide to rent the property instead.
Zillow research published in March 2026 found that 2.3% of rental listings in October 2025 had recently been unsuccessful for-sale listings, near the high in its roughly six-year record. Among detached single-family rental listings, the share was 3.4%.
These are shares of listings on Zillow—not shares of all homeowners.
Some owners have low-rate mortgages that make holding the property feasible. They may choose to wait for a different sales market rather than accept today’s available offers.
More renters does not automatically mean higher rents
Two things can happen together:
More households remain renters because buying is expensive.
More owners offer homes for rent because selling is disappointing.
New apartments and purpose-built rental homes can add further competition. Zillow has identified both new apartment supply and accidental landlords as contributors to cooling rent growth.
When rental supply grows faster than demand, owners may need to lower asking rents, offer incentives, or accept longer vacancies.
Realtor.com’s August 2026 report found asking rents down 0.9% year over year across the 50 largest metros for studios through two-bedroom properties. In the Orlando metro, 58.5% of listings in that same size category offered concessions.
Those figures illustrate competition, but they are not a direct measure of Lake Nona’s larger single-family rental homes.
A Fed cut will not automatically resolve the problem
The Federal Reserve influences mortgage rates, but it does not set them. Fixed mortgage pricing also reflects long-term bond yields, inflation expectations, and mortgage-market risks.
Even if mortgage rates decline, affordability still depends on the purchase price, household income, and total ownership costs.
What this means for Lake Nona owners
Treat renting as a business decision that deserves its own analysis.
Before converting a home into a rental, evaluate achievable rent, competing properties, preparation costs, vacancy, maintenance, and ongoing ownership expenses.
For existing landlords, competition can arrive from homes that were originally listed for sale. Price and presentation need to reflect what renters can choose today.
At Verandah, we evaluate location, condition, and price together. An owner’s expenses determine whether the investment works for that owner. Competing homes and renter demand determine what rent the market will support.
Thinking about renting your home instead of selling—or wondering how your current rental will compete?
Before you decide, understand what your property could realistically rent for, what it needs to attract qualified tenants, and the costs involved. Verandah Properties can help you evaluate your Lake Nona home and make an informed decision.