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The single-family rental market is largely immune from the housing recession.

One of the meta narratives this year has been the housing recession. Between rising mortgage rates and soaring home prices, there is an affordability crisis, especially for the first-time homebuyer.

Recent data from the National Association of Realtors on housing inventory and sales underscores the data. How will this housing recession affect single-family rental real estate investment trusts (REITs) like American Homes 4 Rent (AMH -0.69%)?

What is the housing recession?

The collapse in home affordability has acted as a brake on housing sales. According to the National Association of Realtors, existing home sales have fallen back down to levels last seen during the worst parts of the pandemic lockdown.