I just did a check in the Mira Mesa area and you can in fact buy a house with 20% down for LESS THAN THE COST OF RENT in that area now. Wow. There is a 90% chance that it will be cheaper next year in my opinion, we have so much bad inventory to burn through.

Do you guys think that the rent market, in effect, can support the housing market prices???

With 20% down you can get a 3 bedroom house for $1600/month.
Rent is $1800/month. How much below rent can we go?

I think the real problem is, no one can afford 20% down anymore, everyone is in massive debt right now. So I wonder if the correct figure for comparison is more like 5% or 10% down max? What ya think?

Land lords are not likely to drop their rent prices unless this over supply turns into new rentals and demand drops off.