Demand is still high for rents. But Rich dealt with this issue a couple of months back. His historical analysis showed that rents actually went down ~5% during the last real estate down cycle in the early 1990’s. But if you look at net migration, it was negative. So, we need to see people leaving the area for rents to get soft. Also, everyone that’s evicted at the end of a foreclosure needs to rent somewhere to live. If buyers cant get at the foreclosure inventory to live in or rent out, then that’s added pressure to the rental market as more people look to rent and less home are initially available. This should change a lot in the next 12 months.
