This one year chart of Rental absorption rate tells the story. Investors have largely quit buying homes to rent, and inventory has now dropped below the market stable 2.x months inventory. The rate of the drop has actually accelerated. Another month at this rate, and we will start to experience a serious shortage in rentals, which will lead to prices increasing, possibly swiftly. This can only end one of two ways: Less people rent homes, which seems a bit unlikely, or more homes are offered for rent. The latter is a possibility, but I view price increases as the most probable short term, and year long outlook.