[quote=davelj]I think rents will go down a bit eventually as the foreclosures get sucked up by investors and rented out, but we’re early in the process.

As an anecdote, however, I know a guy who’s in charge of managing two large apartment complexes in Imperial Beach (440 units in all) and he says there are 9 vacant units right now and they have been raising rents 4% on renewals and new tenants recently. For now, folks moving out of foreclosed homes and into apartments are outnumbering folks moving into foreclosed rental homes. I suspect that will reverse in 2009 as more foreclosed homes get purchased and rented out.[/quote]

Having people move from one place to another and then back again is a zero sum game in the long run. We are in a period of higher rents, but perhaps 2010-2012 will be a period of lower rents.

If you really want to see if changes are in store, watch the population numbers. In the mid 90’s SD lost alot of middle class white folks to other parts of the country due to it’s collapsed Aerospace job market. Housing fell due to both the recession, and the lack of demand. This recession is just kicking off. If we get a large outmigration over the next couple of years housing will fall again no matter what the economy does. Housing is only demanded if people are there to demand it.