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.