As buyers continue to shy away from home purchases, many are turning to renting single-family homes. 

The Wall St. Journal reported that, according to the National Association of Home Builders, at $4.4 trillion, the single-family rental market is one of the fastest-growing sectors in real estate. 

“Today, single-family, built-for-rent homes account for 11% of all single-family home construction in the housing market, versus a 3% market share that was typical over the last several decades,” Robert Dietz, senior vice president and chief economist for the National Association of Home Builders, told the Journal. “The sector’s market share is on an upswing and should rise to 15% in the coming quarters.”

The economics of renting over buying are hard to ignore.

Nationally, it cost $888 a month more to buy an entry-level single-family home than to rent it, says the Journal, citing September data from John Burns Real Estate Consulting. Add inflation into the mix, and the numbers are daunting to many families.

But monthly payments aren’t the only factor enticing families into renting. Other influences include tighter credit requirements on mortgage loans, and the desire for a hassle-free lifestyle and ability to move at will. 

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