ORANGE COUNTY, Fla. — Rising interest rates aren’t just making it harder for some home buyers; the trend could make the rental market even more competitive.  

Realtor Jacquie Sosa says in this market, owners can sell their home at top dollar and get multiple offers. She’s seeing buyers basically throwing cash at sellers. 

“The sad part about it is, is that the buyer will have to do it, right? So usually that will mean that they are going to have to cut back on their expenses in other ways of life that they currently live,” she says. 

When interest rates go up this year, it may make it even tougher for buyers teetering on the edge of affordability. It could be the tipping point that forces them to rent instead. 

Sosa explains the ripple effect, “So what is happening with the rental market is once the interest rates start to go up and those buyers can no longer afford to buy, they are going to look to rent and then guess what happens all those landlords are going to start raising their rent.”

Sosa recommends saving as much money as possible to help renters looking to enter the market or first-time buyers be in a stronger position to beat out other offers. 

“Don’t go out and buy a new TV. Don’t open up any more credit. Just continue to buy down that debt. Pay off your debt,” she adds. 

According to Rent.com, rental prices hit new highs in January. The company found Orlando is among the top 10 cities that saw the biggest jump in prices with a 37% percent increase in a one-bedroom year over year.