gn, can you elaborate this "the rental supply is artificially low"? People want to hold on to their rental properties because they want to jack up the rent? Don't get it?
There are many houses financed by exotic mortgages (ARMs). The owners of these houses are likely to be foreclosed by the lenders. Eventually, most of these houses will be taken back by the lenders & put on the market.
Many of the buyers of the REOs are investors who buy because the rental incomes is higher than the cost of ownership. All of this effectively increases the rental supply.
