Renters Lose Edge on Homeowners

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House Prices: Real Prices, Price-to-Rent, and Price-to-Income
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Beginning of a 2 year Declining Rent Curve

We believe on a composite basis, market rents in 2009 could fall between 3 and 6% from peak levels in 2008. And the rent cuts in 2010 could be deeper, depending on how this next phase of the economy plays out.

Rents to Drop 2.1% in 2009

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Rising unemployment, renters doubling up, investors dumping new condos and foreclosed homes into rental market creating oversupply and declining rents. Negotiate "free rent" (1 or 2 months); Landlord pays any rental commissions or rental expenses (e.g. credit report); better lease or MTM terms (reduced security deposit or waiver on credit score); signing bonus (e.g. new frig and/or stove); free amenities (health club, cable, internet); free apartment upgrades (carpet, view, more sf); if property manager says no, go direct to owner.







Good Links: The Residential Rental Market

Q4: Homeownership Rate Declines to 2000 Level

California’s Deepening Housing Crisis September 25, 2008

Renters Again (LA Times 12/16/07)

Los Angeles Housing Department (226 Zip Codes) Vacancy by Electric Meter Activity Report 91.C by month [Worst Vacancy Woodland Hills (91367-15.7%); USC (90007-12.1%); Hollywood Reservoir (90068-12.2%); Venice (90291-10.4%); Porter Ranch (91326-10.3%); Palms (90034-4.2%]; and Fairfax (90036-5.2%)]