– another 3000 to 6000 condos downtown in the next 18 months?
– 20 to 40% of the 24,000 housing units currently on the MLS being vacant and ultimately destined to become rentals?
– net out-migration of people from San Diego?
– continuing deterioration of the local job market?
I just re-read your post – you are specifically saying that rents won’t go down because of increasing supply and because they didn’t go up much – does it matter whether the rents can be supported by the local economy?
What about the idea that prices are set at the margin? If a family can rent a 3/2 condo downtown for $1450 because there is a glut of rental condos, the market rent for the same space in Temecula is not likely to be $1500.
Every investor has to make their own decisions. Perhaps you will buy more units than I this time around but I bet I can pick up enough at my prices to be happy
