Rentable housing numbers vex cities
With mounting foreclosures, investors are snapping up homes and renting them to tenants at bargain rates. But in the long run, the trend could shake the stability of Valley neighborhoods and hurt cities’ efforts to promote homeownership, community leaders warn.
Some cities that have been hit hard by foreclosures are trying to wrap their arms around the problem.
Avondale, which grew rapidly during boom years, now has 46 subdivisions with single-family-home rental rates higher than 20 percent. Almost half of one neighborhood is made up of rental homes.
Local leaders say investors contributed to a housing boom that went bust and, now, are outbidding first-time homebuyers seeking to buy foreclosed properties.