While millions of foreclosed homes languish on the market at lower and lower prices, new data supports the idea that renting out these foreclosed homes could be the long-sought solution to the housing crisis. Rental units are leasing quickly, and the vacancy rate for apartments is at its lowest level in a decade, according to data released Thursday. In many areas, rents are rising.
On Wednesday, Federal Reserve Chairman Ben Bernanke got on board, penning a 26-page white paper, arguing that now is an unusually good time to convert foreclosed properties to rental units for three reasons: demand for owner-occupied homes remains low, demand for rental properties is rising, and the problem of banks' continued hesitance to offer mortgages to everyday Americans means that the situation won't change anytime soon.Read the rest at The Huffington Post
Ben Bernanke's Solution To The Housing Crisis: Renting Foreclosed Homes
by Loren Berlin
3 comments:
So the jobless can use government rental assistance to pay the government rent on government owned houses. And our system is superior to UK councils or the soviet union apartment blocks because..... this is easier than simply boosting aggregate demand and allowing people to work? This is old fashioned Chicago politics. Run a business out of a neighborhood so people will be unemployed and then offer assistance to get votes.
So what are the banks going to collect rent now instead of making loans? Nonsense. Banks do not need any more reasons not to make loans. They seem to think homeowners have made their bed now they can sleep in it too.
If this is true, then I hope Ron Paul wins the presidency and kicks Ben Bernanke out and dissolves the Fed ... just for this and only this reason.
Vulture Ben
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