That doesn't seem to make sense. . .

There are TONS of vacancies in this area. More than I've ever seen in the three years I've lived here. I suspect as the market crashes and ARM holders panic-sell and/or are forced into foreclosure, the demand for rentals will increase somewhat, but right now I just don't see it. The apartment right next to mine has been vacant about four months and they've dropped the price twice - they can't seem to give it away. Decent place too.

Porsche-O-Phile,

Remember that I working with Affordable Housing and the highest that we are allowed to go is to the 60% Income level.

I looked at a deal in Oakley, CA this week, and the 60% rent was $1000, the market rent was $1600, so a 10% increase is still well below market.

Our product is new, and we get more people calling complianing they can't live in it, because they make two much money.

Michael

Lesson so far is to buy, buy, buy realestate, say in NY and to rent it out. The return is for real. The taxpayer is coughing up the ante, so WTF, go with the flo.

Let the record show that I voted 20-35%. I'm in this for the long haul and will BBQ a ****eload of carne asada along the way...:)

Inventory in many SoCal counties:

http://bubbletracking.blogspot.com/

There staredown between buyers and sellers will create price declines unless Ben Bernanke flies over the cities dropping wads of $100 bills and Ameriquest -1% option ARM mortgage apps.