I will tell you this. I had a conversation with an apartment developer who has built 50,000 units in SoCal and here is what he said. They are seeing SOME (ie minimal) pressure on rents, pressure on offering incentives (ie 1-2 months free), pressure on turn-over. NOT because of increased inventory on the market which he thinks is a red herring…that amount of homes being put on the market for rent is miniscule. It is because of two main factors:

1. People are densifying. Whereas before a guy who live alone, now he is getting 1 or 2 roommates to share in rent.

2. People are moving down the ladder. People who were living in downtown are now living in Mission Valley. People living in Mission Valley are now living in North Park or La Mesa. People living in North Park or La Mesa are now living in El Cajon. And so on and so forth.

He is saying there is actually a pressure on rents moving UP in the cheaper areas because more people are down-marketing.