So what is the relationship between home prices and rent prices?
I’m not quite sure. To me it seems like rent prices are driven by demand, and the reason for lots of renters in SD is because affordability and qualifying is difficult, where the latter is more of an issue, with tight lending standards. Thoughts?
Using my favorite benchmark (Mira Mesa), a 1/1 still probably can be rented for about $1350/month, that’s not a terrible increase from 3 years ago when they were around $1200/month. But for the same condo that sold for around $130k, they are pushing close to $200k now. So it seems like while rent has gone up, the rate of rent increase isn’t close to price increase in resale. (damn I wish I bought more).
