Capital constraints are forcing mergers among single-family rental players.

CNBC correspondent Diana Olick explores the key force--need for capital--motivating mergers and acquisitions activity among single-family for-rent players, even as validation of the business model as a sustainable "asset class" gets traction.

Olick's main focus here is on the announcement last week of a merger between Arizona-based American Residential Properties, which owns 8,938 rental homes, and California-based American Homes 4 Rent, which owns 38,377. It's the third such merger of single-family for-rent players in 12 months. Olick writes:

Investors in rentals continue to bet that home ownership will remain low or even go lower. Tight lending, rising home prices and a generational shift in attitudes favoring renting are all on their side. Convincing Wall Street, however, has been tougher.

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