I have a feeling that the last place rents will stop going up is in SFR’s in relativly affordable NC areas like Poway, MM, Clmnt….
Rents will start to hurt in the outerlying or non rental areas long before anything in these areas gets hit. Oside, Esco, southern chulaV, El Cajon, and Santee are much more likey to see problems with rents before you will see anything in the city. CV, LJ and RSF may be too as people are just not willing to pay that premium. (That depends entirly on the economy and could be a non starter.) Itll start with the condo’s and move around depending on the demographics and economy. But lower rent SFR’s in the North county are like well priced houses in CV/4s right now.
I also think rents will eventually fall alittle. Job losses started 2-3 months ago and have not been severe. Rent contracts are for a year and pricing pressure is always inflationary (in the loosest sense of the word) in rents as LL dont like to lower rents ever. They may offer you first month free, effecitivy lowering rents, but they dont lower the dollar cost advertised unless forced to. If we continue on the job loss path we are on, they will fall. If things pickup, then rents are just gonna keep rising.
