with the dwindling renters and increasing supply of rental units

some rental unts must be empty all time. Just like Silicon valley's commercial real estate, a lot of buildings have been empty for few years now.

The scenario happened once to Texas prior to 1990. Lots of houses had been empty, since no renters come forwards to rent those houses.

If the flow of lower priced houses continue, more people of good renters (having stable jobs and good credits) can afford houses. They will buy their own houses and move off the renter lists. It will leave "bad" people to rental markets, which would translate to higher operating costs of running rental properties for property owners. It needs handyman skills and gut mentality to deal with them.

If you believe there is a population growth at certain areas, you must find a reason behind it. Silicon Valley has benefited the huge influx of chinese and indian immigrants for the internet age. Now, due to outsourcing and off-shoring to India and China, the demand for skilled workers at Silicon Valley is not there. If there is no population growth at Silicon valley, a few of property owners may not find renters to fill the houses, no matter how low the rent would be, just as those empty commercial buildings around Silicon valley. One pigeon is for one nest, if you buy off all bank-owned properties and turn them into rental units, do you know if there are enough pigeon to fill them?

Just like any other businesses, if everyone sees the money and run to it, there will be not enough money to go around.

所有跟帖： 

• How about these pigeons that used to live in these REOs? -SR99- ♀ (174 bytes) () 02/10/2010 postreply 22:24:56

• adult kids back to parents, relatives and friends live together. -checkingaround- ♂ (185 bytes) () 02/10/2010 postreply 22:44:48

• Nobody wants to live with parents or friends forever -SR99- ♀ (228 bytes) () 02/10/2010 postreply 23:49:36

• some people will always be renters -laoyangdelp- ♀ (222 bytes) () 02/11/2010 postreply 08:36:39

• 同意，可能就是我们这个圈子买房的多。老墨是租房主力，他们的 -福龟龟- ♀ (28 bytes) () 02/11/2010 postreply 09:00:13