FOLKS ARE GONNA LIVE SOMEWHERE:

Rents Head Up as Home Prices Put Off Buyers (DAVID LEONHARDT, 8/25/05, NY Times)

Rents are rising again across the country, squeezing tenants who are already coping with high gasoline prices and improving returns to landlords after a deep five-year slump.

The turnaround appears to be another sign that the boom in house prices and sales is finally slowing, as homes have become so expensive in many metropolitan areas that some people have decided to rent instead. [...]

With the economy growing and mortgage rates inching up, more people are looking to rent apartments and homes rather than buy them. At the same time, many buildings are being turned into condominiums, reducing the supply of rental property.

And so, when rents get too high and home prices drop what happens?

Posted by Orrin Judd at August 25, 2005 7:14 AM