There was an interesting article in Time this month "The Housing Mirage" that did a very good job of telling the story of how the housing market is coming back and a few reasons as to why there are fewer home owners today even with sales up. 
This article pointed to one fact that large corporations are buying up properties for rentals and that is true.  I know of one brokerage that was given the task of finding several hundred foreclosure and short sale properties to purchase and in some cases sight unseen.  They will be used as rentals till the market turns around enough to sell them and make a good profit.  Good for them and good for us, because they will rehab these properties and in time bring back neighborhoods that desperately need to be reborn.
The article talked of tighter requirements for loans and how that has slowed down buying. That is true and also a good thing, not that buying a home shouldn't be the dream but dreams without commitment aren't really dreams and can be taken for granted as entitlements.
What the article didn't take into account is that the Silent Generation and the Boomers are trading home ownership for leasing, moving south of the boarder and retirement homes.  Both of these generations are larger than any to follow so when they no longer own a home the numbers will continue to go down for home ownership. 
Another factor not included in the article is the workforce of America is more transient today, if you know you very well may be moving in 2-3 years with your company there is a very good chance you wont want to buy.
All these factors contribute to the larger number of non-home ownership and the higher demand for rentals.  Now is the time for those who can to invest in rental real estate while you can.