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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: benwood who wrote (58498)4/17/2006 5:46:25 PM
From: bond_bubble  Respond to of 110194
 
I'm noticing this trend in Bay area, CA as well. In the 2000 bust, bay area had large rental price fall. Now, the tide has clearly turned. Lot of people selling their homes are moving out to an apartment first and leaving the property unoccupied until it is sold!! This should start showing up in the core CPI? Usually, the rent prices go up 10%!! This should be paced over an year ... I can hear Ben shutting down his helicopter....



To: benwood who wrote (58498)4/17/2006 8:27:14 PM
From: russwinter  Read Replies (3) | Respond to of 110194
 
Housing equivalent rent is a large part of the CPI. Now that it's taking off, and housing prices are sliding, time to finesse it back to a homeowner price cost index?



To: benwood who wrote (58498)4/17/2006 10:24:56 PM
From: John Vosilla  Read Replies (2) | Respond to of 110194
 
"Beyond higher mortgage/house purchase costs, declining inventory (conversions to condos) and strong local job market contribute to the increased rental demand."

Add in a relentless rise in RE taxes and insurance as well as costs of maintenance and repairs. All that will get passed along to the tenants..