When I was trying to decide whether to keep or sell my investment real estate I looked into what rents did during the depression
From what I could tell, they dropped significantly when the economy tanked in the late 20’s / early 30’s
It was 1948 before rents started to recover and rise again
Yep, almost 20 years where being a landlord was NOT the place to be
~
In San Diego we have some factors that will contribute to a drop in rental rates:
> 3400 condos coming online downtown in the next 18 months – the market is already in a glut condition
> 30-40% of listings on the MLS are vacant – these units will become rentals at some point (housing that won’t sell becomes rentals)
> net out-migration of educated salary earners – these are the people who MIGHT be able to afford San Diego entry-level homes and they are leaving the city
