O.C. rents dive 6.8% in 6 months

NEW -> Contingent Buyer Assistance Program
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Anonymous_IHB

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<A href="http://lansner.freedomblogging.com/2009/03/09/oc-apartment-rents-see-six-month-drop/16331/">http://lansner.freedomblogging.com/2009/03/09/oc-apartment-rents-see-six-month-drop/16331/</A>
 
[quote author="trrenter" date=1236644687]What does this do to the GRM calculation?</blockquote>


Makes the break even number invalid because the assumed rent is too high.



It's only as overpriced as the rent reduction, so if rents go down 10% you can wack the old GRM price 10% and you're right back at it again.
 
It also means I should ask my landlord to whack 10% off of my own rent when my lease ends in August. She's already trying to lease a nicer unit for the same price I pay (small 5-unit building down by "Brightwater in Huntington Beach" haha)
 
it is amazing how so many people bought rentals over the last 2-3yrs without realizing the rent was "inflated" because many people were priced out of the market . and because they were not willing to pay /couldnt afford to pay 3000mo for a fixer upper they decided to rent for 2500mo. now that the home can be bought for less than the org 3000.mo, the rents are adjusting and many "investors" are having to go back to the drawing board (oh but wait, the property has dropped 25% or more and you are in an adj loan). and your spouse was "in real estate" and your spreadsheet doesnt look like you forecasted. crazy stuff.
 
Does anyone know, offhand, how much rents dropped in The OC overall or Irvine in the early 90s?



It was reported on housing kaboom that rents in the IE dropped 30% between 90 and 93. Similar here?
 
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