A new report indicates that may be just what is happening. According to an upcoming report by Zillow published at CNBC.com, rents were up three percent in January while home prices were down 4.6 percent annually. In normal times when rents rise, people turn to home buying, but that doesn’t seem to be happening-yet. Looking at the Chicago market, rents were up just over 9 percent annually while home values were down just over 10 percent. In San Francisco and Detroit, rents are up around 5 percent while home prices are down the same. Multi-family housing starts are also up- over 14 percent in January from December. Even if renters don’t turn to home buying, Zillow contends the rising supply in rental housing could slow the rise in rents.
(Image Credit: Eric Miller)