San Diego decline in rents surprises experts

sniglet

So much for the theory that a declining real-estate market will lead to a rise in rents. San Diego saw an rise in rents, just like Seattle, but now that their real-estate market is turning down, rents are dropping too.

http://www.signonsandiego.com/news/business/20070607-9999-1b7rents.html

Apartment vacancies in San Diego County are rising as average rental rates have declined, the San Diego County Apartment Association reported in a study released today.

Some analysts said they were surprised that the study found rents to be falling. Six months ago, the association reported that landlords were enjoying rising rents and reduced vacancies. At the time, association Executive Director Robert Pinnegar said potential home buyers were swelling the ranks of renters while they waited for house and condo prices to fall.

The new report attributes the shift, in part, to condominium conversion units returning to the rental market.

SeattleMoose

In recent years all "experts" in the RE realm have lost significant credibility....

Experts you say?.....yawn.

synthetik

Whaddaya talking about? What about all the wall street experts in 1999-March 2000?

Experts are always to be believed!