I’m in Santa Barbara, so I’m not that familiar with SD’s rental occupancy rate. But near my house (not the most fashionable part of town), there are a bunch of fairly plain apartment complexes that always have a vacancy or three. These complexes can’t afford to turn down fully employed applicants who can afford the full deposit, just because they’re being foreclosed. Or at least, based on people I know who live there, they’re willing to take anyone with a job (or financial aid) and a deposit. And you have to figure that growing number of foreclosures will reduce its stigma.
I just don’t see thousands of foreclosed families walking the streets because apartments they can afford would rather have vacancies than let them in. More likely they just demand an extra $1k in deposit. If there’s a demand, someone will create the supply.
