Institutional investors have slowed their once rapid pace of single-family rental acquisitions, causing it to register what Yardi Matrix terms "moderate growth" for the first two quarters of this year. Instead, many of these investors are focusing on becoming more efficient in their operations, which Yardi Matrix stated will put "the industry in position to thrive over the long term."

In the first two quarters of this year, only $412 million of transactions were completed, lagging by far the $2.7 billion done last year and the $2.8 billion in the prior year of 2021. These sales reflect properties with at least 50 or more units.

Among the prime reasons for the slowdown: the absence of inexpensive or affordable financing—no more 3%-4% mortgage rates, the lack of lots of single-family housing inventory available for sale, which is down as homeowners with low-rate mortgages stay put, the lower amount of investment capital pumped into the sector and the higher capital costs, which make it tough for SFR firms to meet their return targets at current home prices and rent levels. And looking ahead, nobody should bet that lower mortgage rates are coming to help spur acquisitions again since the Federal Reserve wants inflation near its 2% target before it lowers rates.