I’m thinking that rental demand per unit may decrease in the next year. More rentals will come online as people give up trying to sell. More inventory means less demand per unit.
Additionally, rental prices are tied to income. It is not inconceivable that there will be a period where rental prices go through a bubble where they get too high (historically). Those caught in the interim are forced to pay higher prices FOR NOW. It takes a while for people to decide to give up on the high cost of living here, decide on a new city, find a job and move. I don’t think crazy increases in rent are sustainable because it will force demand to soften. This will take time, however.
Many years ago my husband and I lived in the same rental for five years (during the last down cycle in SoCal RE). Our landlord sold the property while we were living there. The new owner put the squeeze on us and demanded a 40% increase in rent. We were forced to agree – for two months. Then we moved.
