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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: Jim McMannis who wrote (11040)6/4/2003 12:49:44 PM
From: MSIRespond to of 306849
 
Do you think that tax breaks have anything to do with skyrocketing home prices?

Sure they do.

But not with rents.

My buddy rented a $2 million house in Palo Alto for $2,500/month. That's the same as I paid for an apartment in SF, worth 1/5th as much. Supply/Demand is the rental equation. Unlike taxes, you can't rent for more than the traffic will bear.