Considering the strong rental markets in some regions, one possibility we've explored before is encouraging real estate investors to buy up foreclosed, vacant, or distressed properties and rent them. That would clear some of the excess housing supply and allow investors to capitalize on demand for rental properties.
But, limitations to that proposed solution exist as well. Much of the distressed and vacant housing stock exists in areas where there is weak rental demand or few employment opportunities.
Notwithstanding the myriad other obstacles the housing market faces, until Americans want to buy houses, and homes people want to buy are for sale, it's unlikely any meaningful improvement on the housing front will occur.