Exploring the Potential of the Residential Leaseback Market

Daniel Abadi


The residential leaseback market represents a significant and untapped opportunity for businesses like Sell2Rent. This essay will explore the potential market size for residential leaseback services, considering factors such as refinance cash-out denials, retirement, reverse mortgages, divorce, foreclosures, and untapped home equity. With millions of potential customers each year, the residential leaseback market offers immense potential for growth and profit.

Refinance Cash-Out Denials

Approximately 2 million refinance cash-out applications per year are denied in the United States [1]. Although no statistics are available to determine how many of these homeowners eventually sell their properties, this figure highlights a demographic that could benefit from leaseback services. The total also includes information on approximately 148,000 pre-approval requests that were denied or approved but not accepted [2].

Retirement and Home Equity

We expect approximately 75 million Baby Boomers to retire by 2030. Boomers own 39% of property in the United States. Money.com estimates that homeowners hold $8.1 trillion in equity [3]. As the number of retirees continues to grow, there will be an increasing demand for solutions that allow seniors to access their home equity without incurring significant debt or selling their homes. Leaseback services could provide a much-needed alternative to traditional financial products, such as reverse mortgages, which are often expensive and disadvantageous to homeowners.

Reverse Mortgages

In 2021, more borrowers entered into reverse mortgages—49,207—than the year before [4]. Given the disadvantages and high costs associated with reverse mortgages, the leaseback market has the potential to grow much larger than the reverse mortgage market. As more homeowners seek alternatives to accessing their home equity, businesses like Sell2Rent could capitalize on this growing demand.

Divorce and Homeownership

Data indicates approximately 700,000 divorcing couples in the United States (only 45 states report these statistics). With an 80% homeownership rate among married couples, compared to the national average of 65%, it is estimated that approximately 400,000 divorcing couples are homeowners [5]. Leasebacks play a crucial role in this scenario, as 53.4% of people who divorced in 2022 owned their homes, while only 46.6% were renters [6].

Foreclosures represent another potential market for leaseback services. Homeowners facing foreclosure may be interested in leaseback options to prevent the loss of their homes while addressing their financial challenges. Although the number of foreclosures can vary greatly depending on economic conditions, this market segment could provide a valuable source of customers for businesses like Sell2Rent.

Untapped Home Equity

In the first quarter of 2022, U.S. home equity was estimated at $28 trillion, up from $20 trillion in 2020 [7]. Leaseback services could access a large amount of untapped wealth, with seniors holding roughly $11 trillion in equity. The leaseback market is heading for significant growth as more homeowners become aware of alternative options to access their equity. Among homeowners aged 65 to 74, home equity represented about 47% of their net worth in 2019, according to federal data; among those over 75, it was 55%. Among Black homeowners over 62, it accounted for almost three-quarters of their net worth [8].


In conclusion, the residential leaseback market presents a significant and untapped opportunity for businesses like Sell2Rent. Factors such as refinance cash-out denials, retirement, reverse mortgages, divorce, foreclosures, and the vast amount of untapped home equity indicate a potentially massive market for residential leaseback services. As more homeowners seek alternatives to traditional financial products, the leaseback market could experience substantial growth, offering a golden opportunity for companies like Sell2Rent to thrive.

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