As we were saying before, the rental market can be even more volatile than the sales market and even minor changes in inventory can result in a significant changes in rental rates.
I wonder if an increasing rental market can condition potential buyers to reconcile themselves with paying a larger percentage of their income on housing on a permanent basis. Like Hawaii, where people will get 2nd jobs just to make ends meet rather than leave town.
If so, that would help reconcile the disparity between rents and sale prices, thereby reducing the degree of correction needed.
