Only two small buildings have been seized by lenders and converted back into rentals, with apartment buyers losing their investments.

Developers predict that some of the vacant office and factory space in many suburbs could one day be converted into rentals.

For much of the 20th century the large houses were subdivided into multi-occupancy rentals.

Greenwich is also exploring other sites for moderate-cost housing, like vacant schools, two of which have already been turned into subsidized rentals in recent years.

And thousands of new condominum apartments have been turned into rentals by speculators.

Artists, so often the first to recolonize distressed areas, have moved into rentals in the Artspace building, a former Read's department store.

In Stamford, scores of condominum units have been turned into rentals.

"We went into rentals and leased about 20 units," said Mr. Ginter.

Instead, many houses sell not to owner-occupants, but to investors looking to flip the properties, or turn them into rentals.

To help cover their costs, some strapped apartment owners move into cheaper rentals and sublet.