The median wages would have to decline by a proportionate amount to affect rental pricing. I don’t think there are any high-wage occupations that are gearing up to replace the lost RE-related occupations. Still, San Diego County still has a somewhat diverse economy that does include a larger-than-average share of government and government related occupations. Our economy didn’t revolve around real estate prior to 2000 so – barring the world-wide meltdown some of you guys are projecting – I think there will still be life after RE. I think the median income figure will remain more or less stable even if the value of the dollars that comprise those wages declines.
While we’re on the subject of short-temt timing, I think the meltdown in sale prices will occur, but I think it’ll take longer than just a couple years. Bear in mind that a mortgagee who knows how to abuse the system can forestall foreclosure by as long as 12 months if they want to badly enough.