Clay Kime

How to Solve the Excess Supply in Housing

I would suggest an additional dynamic to consider. The current increases in rental vacancy rates are more a result of homeowners, unable to sell their property for an acceptable amount, having placed their properties on the market "for rent." Any stimulus that would increase demand for the purchase of residential real estate, would consequently move vacant, un-sold, rental properties out of the "rental vacancy rate" inventory. On a net basis, increasing home sales would actually reduce the overall "rental vacancy rate," not increase it.