Seattle rental prices falling
Some rental news from the Northwest: apartment rental rates are falling (via the Seattle Times).
A 10% fall in rental rates is enough to reduce net operating incomes, which will in turn lead to less (or zero) cash flow, which will lead to distressed assets, reduced sales prices and cap rates, and rising rental competition.
Moreover, falling rents lead to falling home prices: as the difference between average rent and average mortgage payment increases, renting becomes increasingly appealing to individuals and families who might otherwise buy homes.