For the record, those states *are* crawling with thousands of landlords looking to establish mini-empires. Thousands and thousands. :)
You've got to consider that the average person doesn't really have their shit together. Either they don't have good enough credit to be able to get a loan, or (and this is probably a great many of them) they can't piece together a downpayment. Life circumstances differ greatly too-- some people know they won't live in the area forever and so don't want to buy. Some people prefer to have a landlord handle the maintenance and capital expenses. On that note, remember that just because your mortgage would be lower than you rent doesn't mean that your expenses would be-- you're taking on the responsibility of paying for insurance, property taxes, repairs, improvements, etc, all out of your own pocket.
TL;DR: Whether by choice or circumstance, there will always be a large and ready rental population, especially in second and third tier cities.