If you started to notice that vacant neighborhoods around have become a little more full, it may be due to the turn of foreclosures into rentals. Many of the homes that have been foreclosed on have been bought by investors who have realized it is much more lucrative and better for the industry to rent them out than to fix them and let them sit on the market.
Even though affordability is up for buying homes, the number of people going through with purchases or even being able to be approved for financing is still low. Experienced investors are able to purchase these homes at a low cost and interest rate and, in return, rent them out to borrower's instead of leaving them vacant.
Ideally, it will be best when the trust in the market comes back full swing and borrower's are more interested in purchasing their own homes than renting, but at least this is a step in the right direction for property values as the more vacant homes an area has, the lower the other homes will be worth when appraised.
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