I think you are mixing up two different markets – Rental & purchase. They don’t have to act in unison. Because purchase price is very high right now, a lot of sensible people (who can very well afford to buy) are renting. That puts pressure on rental supplies causing increases. Especially true in inelastic markets like Del Mar where a lot more than just $ and cents are involved in living. Somewhere I read that if one is concerned about money they are probably not in RSF; probably applies to Del Mar too! (Like some store somewhere in Las Vegas (?), no price tag on the antiques. If one has to see price tag, it is not for him!)
Where I am living here, many listed homes haven’t moved in 7 months; prices are dropping but my rent increased. I am gladly paying it since it is a fraction of ownership cost and I am certain the real purchase price will drop after the Big Bang is over.
