Investors are taking a gamble on the future of renting. They are actively seeking out more homes to buy — but not live in — and setting aside funds explicitly for this purpose, expecting that the number of renters will be increasing. However, they don’t think it’s because people can’t afford to buy; investors think more people will be choosing to rent. More than ever, they are looking at single-family homes, as apartment vacancies are growing, and investors believe it’s because more renters are looking for single-family homes.
The target demographic is wealthier renters in metro areas who presumably want to stay in a better school district and are willing to pay higher rents to make sure they have enough bedrooms to house themselves and their children. Some investors are even building new, since inventory is currently low, which would also increase the rental price and therefore mandate more well-to-do renters.