Will rents create a price floor despite the mini rental bubble?

[Bugs]

It’s not that businesses are going elsewhere – they’re just dying. Lots of small businesses have gone under in the last 18 months or so.

Vacancies are up for certain property types, and actual rents are coming down.

Personally, I think the commercial real estate markets will unwind faster than the residential markets did. A business has to be turning a profit to justify spending the rent.

[EconProf]

BobS
Bugs please give us some evidence that “…actual rents are coming down.” That would be news to me.
Outside of hard-hit areas such as Temecula, I’d be surprised if you could find areas where house and apartment rents are coming down.
The best predictor of where rents are going is the vacancy rate. Right now I believe it is about 5% for San Diego overall, with some pockets where it is higher and some where it is lower.

[EconProf]

BobS
Bugs please give us some evidence that “…actual rents are coming down.” That would be news to me.
Outside of hard-hit areas such as Temecula, I’d be surprised if you could find areas where house and apartment rents are coming down.
The best predictor of where rents are going is the vacancy rate. Right now I believe it is about 5% for San Diego overall, with some pockets where it is higher and some where it is lower.

[EconProf]

BobS
Bugs please give us some evidence that “…actual rents are coming down.” That would be news to me.
Outside of hard-hit areas such as Temecula, I’d be surprised if you could find areas where house and apartment rents are coming down.
The best predictor of where rents are going is the vacancy rate. Right now I believe it is about 5% for San Diego overall, with some pockets where it is higher and some where it is lower.

[EconProf]

BobS
Bugs please give us some evidence that “…actual rents are coming down.” That would be news to me.
Outside of hard-hit areas such as Temecula, I’d be surprised if you could find areas where house and apartment rents are coming down.
The best predictor of where rents are going is the vacancy rate. Right now I believe it is about 5% for San Diego overall, with some pockets where it is higher and some where it is lower.

[EconProf]

BobS
Bugs please give us some evidence that “…actual rents are coming down.” That would be news to me.
Outside of hard-hit areas such as Temecula, I’d be surprised if you could find areas where house and apartment rents are coming down.
The best predictor of where rents are going is the vacancy rate. Right now I believe it is about 5% for San Diego overall, with some pockets where it is higher and some where it is lower.

[bjensen]

Bugs,

I always value your opinion and am glad you are watching this post.

So, if rentals go down and fall to more historical levels will this further depress the housing market? Will decreasing rents make it even more attractive to rent vs. buy in the short term, causing housing to overshoot?

According to government HUD data a 2 bed fair market value in Orange County is $1595 for 2008. A quick poll of my personal friends verifies that this is pretty average for inland North Orange County. So, while you mention that there are some San Diego areas where a 2 bedroom can be had for $1000, I don’t think that’s the case in Orange County.

I am young(very young for this board) and my next home purchase will be my first. I don’t want to ruffle any landlord’s feathers here, I just want to know if rents detached from reality just like homes did. A 30% increase over inflation in the last 7-8 years seems to indicate that is did, unless it was under-priced in 2000.

If rents do go down, will housing go down even further in response?

[bjensen]

Bugs,

I always value your opinion and am glad you are watching this post.

So, if rentals go down and fall to more historical levels will this further depress the housing market? Will decreasing rents make it even more attractive to rent vs. buy in the short term, causing housing to overshoot?

According to government HUD data a 2 bed fair market value in Orange County is $1595 for 2008. A quick poll of my personal friends verifies that this is pretty average for inland North Orange County. So, while you mention that there are some San Diego areas where a 2 bedroom can be had for $1000, I don’t think that’s the case in Orange County.

I am young(very young for this board) and my next home purchase will be my first. I don’t want to ruffle any landlord’s feathers here, I just want to know if rents detached from reality just like homes did. A 30% increase over inflation in the last 7-8 years seems to indicate that is did, unless it was under-priced in 2000.

If rents do go down, will housing go down even further in response?

[bjensen]

Bugs,

I always value your opinion and am glad you are watching this post.

So, if rentals go down and fall to more historical levels will this further depress the housing market? Will decreasing rents make it even more attractive to rent vs. buy in the short term, causing housing to overshoot?

According to government HUD data a 2 bed fair market value in Orange County is $1595 for 2008. A quick poll of my personal friends verifies that this is pretty average for inland North Orange County. So, while you mention that there are some San Diego areas where a 2 bedroom can be had for $1000, I don’t think that’s the case in Orange County.

I am young(very young for this board) and my next home purchase will be my first. I don’t want to ruffle any landlord’s feathers here, I just want to know if rents detached from reality just like homes did. A 30% increase over inflation in the last 7-8 years seems to indicate that is did, unless it was under-priced in 2000.

If rents do go down, will housing go down even further in response?

[bjensen]

Bugs,

I always value your opinion and am glad you are watching this post.

So, if rentals go down and fall to more historical levels will this further depress the housing market? Will decreasing rents make it even more attractive to rent vs. buy in the short term, causing housing to overshoot?

According to government HUD data a 2 bed fair market value in Orange County is $1595 for 2008. A quick poll of my personal friends verifies that this is pretty average for inland North Orange County. So, while you mention that there are some San Diego areas where a 2 bedroom can be had for $1000, I don’t think that’s the case in Orange County.

I am young(very young for this board) and my next home purchase will be my first. I don’t want to ruffle any landlord’s feathers here, I just want to know if rents detached from reality just like homes did. A 30% increase over inflation in the last 7-8 years seems to indicate that is did, unless it was under-priced in 2000.

If rents do go down, will housing go down even further in response?

[bjensen]

Bugs,

I always value your opinion and am glad you are watching this post.

So, if rentals go down and fall to more historical levels will this further depress the housing market? Will decreasing rents make it even more attractive to rent vs. buy in the short term, causing housing to overshoot?

According to government HUD data a 2 bed fair market value in Orange County is $1595 for 2008. A quick poll of my personal friends verifies that this is pretty average for inland North Orange County. So, while you mention that there are some San Diego areas where a 2 bedroom can be had for $1000, I don’t think that’s the case in Orange County.

I am young(very young for this board) and my next home purchase will be my first. I don’t want to ruffle any landlord’s feathers here, I just want to know if rents detached from reality just like homes did. A 30% increase over inflation in the last 7-8 years seems to indicate that is did, unless it was under-priced in 2000.

If rents do go down, will housing go down even further in response?

[sdduuuude]

Look at the very last line of this web page.

It says “In God we Trust. Everyone Else Bring Data.”

Please show me some sort of historical chart that shows we are in a rent bubble.

[sdduuuude]

Look at the very last line of this web page.

It says “In God we Trust. Everyone Else Bring Data.”

Please show me some sort of historical chart that shows we are in a rent bubble.

[sdduuuude]

Look at the very last line of this web page.

It says “In God we Trust. Everyone Else Bring Data.”

Please show me some sort of historical chart that shows we are in a rent bubble.

[sdduuuude]

Look at the very last line of this web page.

It says “In God we Trust. Everyone Else Bring Data.”

Please show me some sort of historical chart that shows we are in a rent bubble.

[Author]

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