Millennials will make 'rent bubble' disappear: Pro

The "rent bubble" in the United States will vanish when more millennials start families and buy houses, the chief executive of an investment advisory firm said Tuesday.

"The millennials will get married, will have children. They will want a house," Bill Smead, CEO and CIO of Smead Capital Management, told CNBC's "Closing Bell."

Millennials at open house
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Millennials, a broad range of younger adults, generally prefer rental housing to homeownership. Americans paid a collective $441 billion in rent in 2014, a 4.9 percent increase from 2013, as supply became further constrained, CNBC reported earlier Tuesday.

Read MoreRenters shelled out $441 billion in 2014: Time to buy?

Smead contended that the age group will flock to homeownership and ease the demand for rental housing in the next few years.

"If you get married and you buy a house, the rent bubble goes away," Smead said.