How to Play the Home Price/Rent Gap

A home for sale sits next to an unfinished lot at a development in Greensboro, North Carolina Photograph by Victor J. Blue/Bloomberg

It’s the paradox of our housing market: Home prices remain low while the cost to rent is high. For investors who can take advantage of that gap—those who can buy foreclosures on the cheap and rent them out to people who can’t afford to, or don’t want to, purchase a house—there’s a lot of money to be made. It could reach above $100 billion during this year alone, according to a new report by the real-estate-data firm CoreLogic.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.