LOS ANGELES – Home prices are tumbling to fresh lows, but new data show the rental market is on an upswing, an early indicator that housing may be headed into recovery.

Rents are increasing because the foreclosure crisis has created a steady supply of renters in recent years, analysts said.

Adding to the housing squeeze is the nascent jobs recovery, which is fueling desire for rental housing as people find employment and strike out on their own. Many renters with the potential to buy a home are also sticking to the rental market given the home price slump and the difficulty these days in getting a mortgage.

Few new apartments have been completed in recent years, which limits the supply, but housing starts in recent months have improved largely because of new construction on apartments. Investors have also been snapping up foreclosed homes and converting them into rental units, and governments are backing those efforts with new initiatives.