Agree on the law of conservation of homes. That said, I see inventory rising as part of the bust. The vacancy rate is already up, and the foreclosure avalanche will also increase vacancies as they wind through the auction/sales pipeline. You’ll also wind up with folks who have lost their homes and are “desperate renters.” I think there will be excess demand chasing supply leading to a rise in rents.
Credit will become a real issue in the rental market as those who were forclosed on, who were short selling, or who moved after a large dent in any equity they had seek shelter.
The disparity between rents and mortgages will narrow from both ends-prices coming down, rents moving up. I don’t see rents skyrocketing, but I do believe they’ll move up.
