THIS WAS ON THIS WEB SITE A FEW MONTHS AGO< It's huge if you wanna read it all.....but here's one section from "powayseller"
Rents are up.
User Forum Topic
Submitted by lindismith on July 11, 2006 - 10:12am.
The rents are up in SD - I know because I've been looking for a new place to live, and they've been rising steadily.
Can anyone tell me how this is happening when the population is decreasing?
Are owners being forced to raise rents because of higher mortgages?
Is the Internet allowing owners to more quickly get a snapshot of higher possible rents, so are they just increasing them?
Is it just seasonal?
‹ Builders margin? Free Inflection Point Forecasting Model ›
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Prices go up when demand
Submitted by powayseller on July 11, 2006 - 10:33am.
Prices go up when demand exceeds supply. The people leaving are homeowners who are selling. We have 30% vacancy in homes for sale, but what is the vacancy rate in rentals?
More and more people want to rent, pushing up the price.
The rental stock is shrinking, as apartment conversions were made into condos, and rental stock has not been replenished for a long long time.
The CPI which is 40% rents, is going up because rents are rising. As housing becomes unaffordable from rising interest rates, people choose renting over buying. This will exacerbate when lending standards tighten next year.
A few months ago, I was tossing around the idea of locking in a 2 year lease, and I couldn't figure out whether rents would go up or down. I had a list of arguments on both sides. I ended up signing the 2 year lease. Sounds like it was a lucky decision.
I am wondering if you can quantify your search. How much is the increase? Apartments or houses?
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You can ignore or decide to think it is unreal, but the position is there.....
