Between 2007 and 2013, the number of detached single-family homes for rent increased 40 percent, from 9.5 Million to 12.4 million.
Curbed reports that during the housing crisis, large investors snatched up thousands of foreclosed homes and transformed them into rentals.
The rentals appeal to Millennials, who are putting off homebuying, in part because of the lack of affordable starter homes.
For investors, the growing rental market will bring steady returns, a safer option than putting money into the stock market.
Gary Beasley, the CEO and co-founder of Roofstock, is optimistic about the future: Millennials starting families still want to be inside a house, even ones they don’t own, and the turn towards more professionally owned properties make it easier to attract tenants. “You pay for housing as you consume it, and never have to worry about the huge transaction costs,” he says. “I’m bullish on the need for the product. People are moving around more, and the ability to test out a neighborhood before committing is a huge advantage.”