new housing "rental" foreclosure bubble creating massive pressure on rents
read an interesting article on Business Insider today where the push to buy foreclosures and short sales as investments buy hedge funds in many markets is driving down rents as most of these are sitting vacant, an interesting twist on where this low interest rate money bubble is going next. of course people driven out of foreclosures have to go somewhere to rent also, but is there any real demand for rentals now? people can just rent a house cheap in most formerly distressed markets.
Well, Reis says the outlook is "stout." The outlook for 2013 remains stout. Although new completions are expected to accelerate substantially during 2013, demand should remain tight. With demand outpacing new completions, vacancy is expected to continue to decrease, but the rate of decline will slow as the market digests all of the new units coming online. However, given that tightness in the market will persist, rent growth will continue to accelerate – having shorn concessions landlords now feel empowered to raise face‐level asking rents in a more pronounced fashion