"Rents soar" — and that could be good for sales

So what happens when a lot of people lose their homes to foreclosures and short sales? And a lot more find they don’t qualify for a mortgage? They rent, obviously.

And when demand for rentals goes up, what happens? Anyone? Yes, you in the back.

That’s right: Prices go up.

And that’s exactly what’s happening, reports the LA Times, in “Rents soar as foreclosure victims, young workers seek housing.”

It’s certainly not limited to California, and it likely means good news for home sales. Prices are already down (as you well know), and loosening lender standards will make buying a possibility for more people — and high rents will make the prospect harder to resist.

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
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