Prices can stay above rents as long as owners are pedurased that the current low rentals will not last. While in-migration stays strong and new construction stays low, that seems a reasonable assumption. As long as it is hard to get a loan for new construction, the available supply will not increase. Once the population catches up, rents will rise. All the people doubling up now to save on rent will stay doubled up because there won't be any more houses, and those extra people per unit will allow rents to increase.

by Cina 09:43:30 PM 2012.08.30