[quote=poorsaver]It’s peculiar how rents could fall when demand is strong due to record breaking foreclosures. I’m in the eastern part of LA county and let me tell you rents here are certainly not going down. 1300 sq. ft. 45 yr. old POS still getting $2000 a month minimum. Sad.[/quote]
I think the higher end areas are seeing softer rents than the lower end areas right now. But the lower end areas will eventually feel the pinch too.
I know of a 400+ unit development in Chula Vista that’s got 3 vacant units. Rents are rising very modestly. This development is near – but not at – the bottom of the rental food chain. I think foreclosures are driving a lot of these folks into apartments. But eventually the foreclosures will get sold and many will be available for rental, which will impact overall rents in the area.
On the other hand, there aren’t as many foreclosures at the higher end, and as medium-to-high end condos come on the market as rentals (from specuvestors and reconversions) – and there are a LOT of these right now – this market is affected.
