Figures from Zillow show that there are fewer single family homes available to rent now than they were a decade ago, while demand continues to rise - making renting homes more expensive.
In fact, the median monthly rent for single family homes is rising faster than the median monthly rent for apartments in half of the 50 largest US metros.
"When the market crashed, many families lost homes they owned during the foreclosure crisis, and now may not be able to afford to buy another as home prices rise," said Zillow Chief Economist Dr. Svenja Gudell.
"Those who want to buy are finding it difficult to find the right one, or may need a bit more time to come up with a down payment, but still want the advantage of space that single-family residences often provide. This, coupled with the foreclosure crisis turning millions of homeowners into renters, is a big reason why demand for single-family rental homes has risen over the last few years,” he added.
Demand for single-family homes to rent is driven by Gen-Xs with 40% of this generation preferring a single-family home compared to 25% of Millennials.
More market update:
It's not just in the for-sale market that inventory remains low, there is also tight supply in the rental market for single family homes.