The single-family rental market will continue to stay strong for years to come, according to Frank Nothaft, chief economist for CoreLogic and former chief economist at Freddie Mac.

Nothaft is bullish on the sector because the largest demographic cohort are 22- to 25-year-old millennials who are getting ready to form new households. The average age of first-time homebuyers, on the other hand, has moved up into the 30s.

“Since the great recession began, household formation has been anemic,” Nothaft wrote in a column for HousingWire. “But this year household formation will be at its highest point in 10 years – close to 1.7 million new households – many of which will be renters.”

More than 5.8 million homeowners lost their homes to foreclosure during the housing crisis over the past seven years. While some have returned to be owners, many remain as renters.

About 35 percent of all rental stock are single-family rentals and single-family rentals tended to have the lowest vacancy rate – less than 3 percent compared to 8 percent or more among larger apartment buildings, Nothaft noted.

“No matter how you crunch the numbers, the outlook for rentals looks strong for the foreseeable future,” Nothaft wrote.