Assuming the San Diego economy does not get substantially worse, I would assume rents under $1200 to increase. There are a lot of applicants for rents at this price – the normal increase in renters, the former homeowners now becoming renters, and whatnot. Until there is a mechanism in place to quickly convert foreclosures and other distressed properties into viable rentals, I do not expect this rent price point to decrease.
For rental properties above $2000, I would expect to see some reductions, as a few landlords get foreclosed upon and most people start looking to lower their expenses. There might be a lot of former homeowners looking to rent above $2000 properties, but I don’t expect enough to them to increase the price point.
