Merger In Rental Market Shows Likelihood Of Rising Rents

Two big companies that own single-family rentals said today that they are merging.

Starwood Waypoint Residential Trust, a publicly-traded real-estate investment trust, and Colony American Homes are coming together in a sign that they are betting on rents continuing to rise as American home ownership reaches a nearly 50-year low.

An executive chairman of Colony American Homes' parent, Colony Capital, Thomas J. Barrack Jr., spoke with The Wall Street Journal and said the upcoming merger "demonstrates the long-term durability of the single-family rental industry."

CBS News business analyst Jill Schlesinger discusses the impact this type of merger could have on the rental market with Here & Now's Robin Young.