I still like this idea of avoiding decreasing the overhang of unsold housing stock by putting foreclosed homes on the rental market instead of the housing market. So glad to see it getting some attention.
Note that according to the piece, Fannie and Freddie would sell foreclosed homes to investors who would agree to keep them on the rental market until the housing market improves and home prices start rising again (then the investors could sell them if they chose to). So the US gov’t isn’t the landlord, which is a useful policy wrinkle.
Maybe try this out in a few places where the housing glut is most severe, like Florida or Nevada. It’s often useful to start with a pilot program in a few places with new ideas like this—typically, we learn important lessons early on re implementation.