23109, I disagree with the rent trend here in Temecula. I’ve been following pretty closely and it has come down since August 2006 when I started watching. Here’s a harveston for you I found on craigs
One of the things is that most rentals aren’t dialed in with granite and top end applinaces and expensive flooring, so your selection is limited for now but it’s growing every day. Some of the landlords are having cash flow issues, many are for sale and rent and a lot of the brown lawners aren’t for rent during foreclosure. By late summer when the listings that are growing every day fail to sell, many will choose to rent them out.
Another thing is the shortage of rentals, in 92592 (so. temecula) pop. 56,000 there aren’t any apartment buildings and as of a year ago only one small townhome complex. Now, 92592 has four major projects under construction with more than a thousand units of condos most will be completed by years end, none are rented as apartments (even though half look like them) but many will end up as rentals or first time purchases for current renters. You can’t increase a product a few thousand percent without putting downward pressure on pricing.
To the poster that asked why you can’t apply a rent multiplier in San Diego, I should have qualified it by saying “you can’t apply it now” since it has never been this silly.
I used Bugs’ formula and it was spot on for the last down cycle. In 1996 I was faced with renting out or selling a property. It sold for about 140x rent. I chose to sell because investors were buying the massive forclosures and renting them out, finding a renter was difficult at the time and price wars and incentives for renters were commonplace. But, history never repeats itself, right?
