Speaking in terms of historical averages, is the rent/buy ratio 1:1? By “buy” I mean PITI+HOA.

Example: A 3bd 1500sqft townhome in Mission Viejo is renting for about $1800/mo.? Similar properties are currently listed on the MLS for an average of $500,000 or so, although there are a few listed $410-430k range.

The price point that generates a $1800/mo payment for PITI+HOA is around $275,000 or so (assuming $200 HOA).

If we take a 1:1 ratio then we can expect a 45% drop in list prices.

As for rental trends, I am actually seeing DECLINES, perhaps due to the rapidly declining job market. Personally, my rent went up 10% last year and only 3% this year. That is definitely a sign.