If a lof of rental vacancy, where did the renters go

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Submitted by RB132 on January 17, 2009 - 5:43pm

There a lot of discussion here about the high vacancy for rental homes.

My question is how this happend? Where did the renters go?

lose porpulation?
people move back to their parent home?

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Some of that and also
Submitted by Enorah on January 17, 2009 - 6:00pm.

Some of that and also "investment" properties meant to sell that could not, so now are being rented. There are a number of homes for rent in the Encinitas area that look like they were not intended to be rentals.

It is pretty well documented
Submitted by EconProf on January 18, 2009 - 9:31am.

It is pretty well documented that in recessions, people double up, move in with relatives, and reluctantly join with roommates. The deeper the recession, the more pronounced this trend. Another example of demand destruction.
Just like commodities suffer in deflation, so also will rents.

It's likely that many of the
Submitted by TheBreeze on January 18, 2009 - 9:47am.

It's likely that many of the illegal immigrants have left:

Classrooms in Orange County, Calif., are suddenly half-empty. Latino day laborers seem to be less thick on the ground at their morning gathering places. Remittances to Mexico and other Latin countries are down, and men are returning to some villages from the United States.

Latinos appear to account for a disproportionate share of mortgage foreclosures. The Census Bureau estimates that net immigration in 2007-08 was 14 percent lower than the average for 2000-07, and those estimates don't cover the period after June 30, when the recession really started hitting.

http://www.realclearpolitics.com/article...

a lot of condo's bought by
Submitted by patb on January 18, 2009 - 11:16am.

a lot of condo's bought by flippers are now being rented.

it's supply explosion

This is a real bad time to be
Submitted by HereWeGo on January 18, 2009 - 3:39pm.

This is a real bad time to be a landlord, IMO.

I've noticed many RE investor
Submitted by peterb on January 18, 2009 - 3:58pm.

I've noticed many RE investor clubs that have been touting the "buy and rent" scenario as the road to riches. I've seen them being very active in the $300K and under sector. This is creating many rentals out of the low end foreclosure market inventory. This may start to make a glut of rentals on the market.
I dont think this is the right time for this strategy as the recession is just getting up to speed. We shall see. I have a feeling these may be the next wave of foreslosures should the cash flow go negative on these homes for too long.