Demand for Rental Housing and Condominium Foreclosures Rose in MS

The number of residential properties which are being offered for sale, including condominium foreclosures, has increased in several areas of Mississippi. Rental housing and properties up for lease have also increased as real estate brokers and agents try to cope with the continuous deluge of people seeking residences in various areas of the state.

Foreclosure homes in Ocean Springs and other for-sale residential properties in various areas of the state continue to rise in the past few months. In Tupelo, rental properties are the hottest commodities as more and more people opt to rent dwellings instead of buying them. As of January 2011, more than 360 houses are up for sale in Tupelo, with several of them also offered for lease purchase.

According to brokers, the high demand for rental housing has convinced several sellers of properties under Mississippi foreclosure listings to rent their houses out. At least, until the prices of residential properties are more stable. Property agents have reported that on a given day, they receive as many as 20 queries about rental housing in the area. These inquiries range from those looking for affordable rental dwellings to those seeking high-end houses.

A big number of condominium foreclosures and other rental properties that were initially being offered for sale have already been converted into lease-rental properties, realtors reported. They stated that the surge in rental housing demand, particularly in the single family residential sector, is fueled by the ongoing foreclosure crisis, which prompted more people to rent houses instead of venturing into homeownership.

It has also become more difficult for potential buyers to secure financing, even for low-priced residences offered at foreclosure listings. Realtors also stated that the coming opening of the Toyota factory in the area has resulted in more company employees moving to Tupelo and looking for rental dwellings. Majority of these employees, realtors have stated, are still not sure how long they are going to stay in the city, hence, the preference for rental homes.

For now, most realtors are suggesting that those who are trying to sell residential and condominium foreclosures would be better off renting the places out. They stated that demand for rental spaces is definitely higher than demand for homeownership at this time.