AN – My experience was similar. We purchased a Clairemont house for 160K in spring 1996. Rent for equivalent properties was 1000-1100 per month. Our mortgage rate was 8.25%.
SFH rents were about mortgage rates + 0 to 1% at the bottom of the last cycle.
P.S. – If rates go back up to the 8% range as I expect, I would expect prices in the same area would drop to somewhere in the 320K range. (I’m assuming real rent growth rates of negative 4 %, i.e. flat rents and 4% inflation).
