Fewer homes sell as rental demand soars, Zillow says

South Florida home buyers are starved for listings, and Zillowpartly blames the shortage on a big increase in single-family rentals during the past 17 years.

The tri-county region has 77 percent more homes being rented nowthan in 2000, the real estatewebsite reports.

South Florida has 242,000 singlefamily rentals compared to 137,000 in 2000.

Las Vegas led theU.S. with an astronomical 259 percent increase in single-family rentals. Phoenixwas second with a 187 percent increase.

“Thousands of single-family homes thatwere once bought and sold every few years prior to the recession have nowbeen converted into rental properties by investors, trading hands much less frequently … contributing to inventory shortages,” ZillowChief Economist Svenja Gudell said in a statement.

Still, the situation is slowly starting to improve for South Florida buyers.

Broward, Miami-Dade and Palm Beach counties had1.3 percent more homes hit the market inMay compared to a year ago, Zillowsaid.

Nationally, buyers had 9 percent fewer homes to choose fromlast month, the fastest decline in almost four years.

Zillowcited other factors for the shortfall in listings, including more millennials buying homes, lowlevels of construction and still-sizable numbers of homeowners who can’t sell because they remain “underwater” on their mortgages.

“There is no silver bullet that will clear the market of all of these issues, and buyers frustrated by the status quo will likely have to remain patient and be ready to pounce once that perfect home does become available,” Gudell said. Zillow Chief Economist Svenja Gudell