I kind of agree and I kind of don’t. Theoretically, owners cost will influence rental rates if it is a cost common to all the landlords and not just one. i.e. if every landlord had an ARM and the rates went up, each could raise rents without fear of being undercut. Or, if the government issued a new tax on rental income, that would affect rents also.

In a deflating bubble, should more and more landlords be stuck in bad loans, I could see it gently bumping rents up.

In reality I suspect you are correct – there probably aren’t enough landlords basing rents on their costs to affect the market price.

I’m sure we agree the key for our carlsbadliving renter is to know the market.