The US rental market is on fire

The US rental market is on fire. 

On Tuesday morning we got the latest report on rental and homeowner vacancies from the Census Bureau, which showed that rents are soaring and vacancies in the US have plummeted to their lowest level since the mid-'80s. 

And so it looks like the much-maligned millennial generation is moving out of their parents' basement and into apartments or rental homes as they look to get themselves settled before buying a home. 

As for the more advanced millennials, Tuesday also saw the release of household formation data that showed household formation against last year is absolutely surging. 

Consumer confidence data released alongside these housing figures were, however, a disappointment. But as Bespoke Investment Group's George Pearkes noted, not all data are created equal: opinion is not action.

Consumer confidence today is opinion; HH formation is action. On a lag, but much, much more important.

- George Pearkes (@georgepearkes) July 28, 2015

And so the reality is that under the surface, the housing market in the US is chugging along. Here are the charts: 

Rental vacancies are tight. 

Census

And rents are soaring. 

Census

 While household formation is booming. 

@georgepearkes