Back in the middle of the summer, the concept that the government should try to fill foreclosed homes with renters was floated. Yesterday, the Trulia Insights blog looked at the effectiveness of a push by Fannie, Freddie and the FHA to sell government-owned homes to investors who would then fill them with tenants.
Trulia’s Chief Economist Jed Kolko explored the impacts of the policy, analyzing the market for REO homes and determined that while the policy is a small step in a positive direction and would help some distressed neighborhoods, with REO homes clustered in places like Michigan, Georgia, the Southwest, and inland California, most urban centers wouldn’t see too much benefit.
If you don’t live in a neighborhood with lots of homes that the government can sell or rent, then REO policies wouldn’t do you much good. Renting out these government-owned homes wouldn’t ease pressure on tightening urban rental markets. Renters typically live in bigger, denser cities, which are not where most of the government-owned homes are. In fact the typical location of a government-owned home is in a neighborhood with fewer renters, higher rental vacancies and where homes are more spread out.
This article originally published at https://dc.urbanturf.com/articles/blog/another_look_at_renting_out_foreclosures/4674.
Most Popular... This Week • Last 30 Days • Ever
The storied unit along P Street is now looking for a new owner.... read »
There are five projects in the works around Audi Field which could bring nearly thous... read »
TideLock is a mixed-use development that will consist of 169 apartments and 65 condom... read »
DC is getting close to meeting Mayor Muriel Bowser's goal of producing 36,000 new ho... read »
The share of homes priced above $1 million continues to rise in the city.... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro