Problem is we dont have the rental data for those areas and cant assume rents in those areas behaved the same. Based upon where prices have been strongest my guess is rents are up more in those areas also. Of course thats just a guess.
The point is that this calculation puts up a good case that the worst of the carnage is past. It does not say that there isnt potential for more downside but rather things look alot closer to “normal” then the staunchest housing bears are willing to beleive.
