house-vs-apt-rental-slideshow.jpg
As the housing market continues seeing higher home prices, strong demand and historically low mortgage rates, single-family rental inventory is growing at a faster pace than apartments in a majority of the nation's 30 largest cities, according to RentCafe.

While many distressed single-family properties were snapped up by investors during the housing crisis, only 2% of the more than 15 million single-family rentals on the market belong to large investment firms, while almost half, or 45%, belong to landlords owning just one unit, which could signify that homeowners are holding on to their homes, RentCare said.

With home values continuing to grow and mortgage rates at historic lows, move-up homebuyers may find it appealing to become landlords as costs to rent continue rising, meaning homeowners are able to maintain the mortgage on their original house while perhaps making a profit.

And with many would-be homeowners resorting to renting single-family homes due to challenges with affordability and tight inventory, single-family rental demand is especially high, which keeps the rent that landlords can charge high.

From 2007 to 2016, single-family rentals increased more than double the rate of multifamily rentals; single-family rentals rose 31%, or 3.6 million units, while multifamily rentals increased only 14%, or 3.2 million units.

Though mostly common in suburban areas, single-family rentals have strengthened in some of the nation's largest urban markets. In Phoenix, for example, the share of single-family rentals grew 77% between 2007 and 2016, the largest growth among large cities of that time period.

From Phoenix to Nashville, here's a look at the top 12 cities where single-family rentals are growing faster than apartment rentals. The ranking, compiled by Rentcafe according to Census Bureau data, is based off of increases during the 10-year period between 2007 and 2016.
NMN041018-houston-adobe.jpg
Houston, Texas, USA downtown city park and skyline.
SeanPavonePhoto - stock.adobe.com

No. 12: Houston, Texas

Single-family rental units: 102,100
New single-family rental units: 28,800 (39%)
Multifamily rental units: 387,500
New multifamily rental units: 71,600 (23%)
Population: 2,304,400
NMN041018-memphis.jpg
Memphis; Tennessee, USA - November 29, 2011 High angle view of downtown of Memphis, Tennessee. Mississippi River and Pyramid Area on the right, Clock Tower in the foreground. Seen during fall morning.
Henryk Sadura/Henryk Sadura - stock.adobe.com

No. 11: Memphis, Tenn.

Single-family rental units: 60,000
New single-family rental units: 17,400 (41%)
Multifamily rental units: 82,800
New multifamily rental units: 8,500 (11%)
Population: 652,800
NMN041018-chicago.jpg
Trey - Fotolia

No. 10: Chicago, Ill.

Single-family rental units: 60,400
New single-family rental units: 17,600 (41%)
Multifamily rental units: 531,800
New multifamily rental units: 62,600 (13%)
Population: 2,705,000
NMN041018-las-vegas.jpg
Famous Las Vegas sign on bright sunny day
Elnur Amikishiyev/Elnur - Fotolia

No. 9: Las Vegas, Nev.

Single-family rental units: 43,700
New single-family rental units: 13,000 (42%)
Multifamily rental units: 60,900
New multifamily rental units: 3,700 (6%)
Population: 632,900
NMN041018-nashville.jpg
Nashville Skyline, Tennessee and the Cumberland River with river reflection
Joseph Sohm/spiritofamerica - Fotolia

No. 8: Nashville, Tenn.

Single-family rental units: 34,300
New single-family rental units: 11,000 (47%)
Multifamily rental units: 91,700
New multifamily rental units: 20,000 (28%)
Population: 660,400
NMN041018-indianapolis.jpg
Indianapolis, Indiana, USA skyline on the Canal Walk.
SeanPavonePhoto - stock.adobe.com

No. 7: Indianapolis, Ind.

Single-family rental units: 61,300
New single-family rental units: 20,000 (48%)
Multifamily rental units: 95,600
New multifamily rental units: 11,900 (14%)
Population: 852,500
NMN041018-elpaso.jpg
City view with Bonaza church in the centre of El Paso village on the western part of La Palma island
rh2010 - Fotolia

No. 6: El Paso, Texas

Single-family rental units: 35,900
New single-family rental units: 12,100 (51%)
Multifamily rental units: 56,200
New multifamily rental units: 6,700 (14%)
Population: 683,100
Charlotte
Guy Bryant - stock.adobe.com

No. 5: Charlotte, N.C.

Single-family rental units: 51,400
New single-family rental units: 18,200 (55%)
Multifamily rental units: 98,800
New multifamily rental units: 22,100 (29%)
Population: 842,000
NMN041018-austin.jpg
Ryan Conine - stock.adobe.com

No. 4: Austin, Texas

Single-family rental units: 50,500
New single-family rental units: 17,900 (55%)
Multifamily rental units: 152,100
New multifamily rental units: 21,700 (17%)
Population: 947,900
NMN041018-fortworth.jpg
Skyline of Fort Worth Texas at night
Leena Robinson/leekris - Fotolia

No. 3: Fort Worth, Texas

Single-family rental units: 53,400
New single-family rental units: 20,000 (60%)
Multifamily rental units: 67,700
New multifamily rental units: 9,700 (17%)
Population: 855,900
NMN041018-boston.jpg
Boston, Massachusetts - July 13, 2013: The historic 1713 Old State House at the corner of State and Washington Streets is a landmark site on the Freedom Trail
Picasa/lspi138 - stock.adobe.com

No. 2: Boston, Mass.

Single-family rental units: 13,400
New single-family rental units: 5,200 (63%)
Multifamily rental units: 160,100
New multifamily rental units: 27,100 (20%)
Population: 672,800
NMN041018-phoenix.jpg
Downtown Phoenix, Arizona.
Ivan Paunovic/Dreamframer - stock.adobe.com

No. 1: Phoenix, Ariz.

Single-family rental units: 100,800
New single-family rental units: 43,800 (77%)
Multifamily rental units: 154,100
New multifamily rental units: 26,500 (21%)
Population: 1,615,000
MORE FROM NATIONAL MORTGAGE NEWS