Rhonda said: “I’m hearing that rents are rising now”
Yes, rental rates are rising in the Seattle area right now. However, we haven’t experienced much of a decline yet. I am merely saying that every story about rents I have seen from areas suffering large price declines indicate that life is rough for landlords there. I haven’t read one story yet about rising rents in a region experiencing significant price declines.
I’ll grant that a couple years ago I was reading stories from places like San Diego, talking about how rents were finally starting to rise. But the stories about San Diego rents I have seen recently talk about how prices are dropping with all the increased supply from struggling home-owners letting out their properties. There also seems to be a trend of some people moving in with relatives or room-mate situations, which further slackens rental demand.
If anything, rising rents is an indicator that a given real-estate market is about ready to tank. Rents seem to rise right at the very apex of the markets, just when appreciation has stopped, yet depreciation hasn’t really picked up.
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July 31st, 2008 
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