The end of this year I'm going to have to find a new place to stay. At least I will if things go right. We're going to have to rent for a bit since there's no way I'll be able to buy a house when getting out of the Navy. Since the housing prices are dropping will that make the rent rates go up?

generally speaking, yes. rents are increasing a bit due to higher demand. however, with this big fed rate cut pushing more people to refi at a fixed rate, i can see rents starting to level off and new home prices slowing their plummet. granted, this will take at least 2-3 months to be visible in the markets, if the fed does cut rates again next week, i predict mid-spring and early summer will be solid times to look into buying. at the end of this year i think we'll still see depressed home prices but rents might start creeping up again.

remember, when it costs less to borrow money, the people with money (investors) tend to be first movers and start buying investment properties again.

Historically, rents rise as property markets fall. Rent rates will go up, but nothing astronomical like housing prices did.

However, there is a glut of rental inventory as many flippers became involuntary landlords; unable to sell at a profit or break even. Many are renting at a loss, but that's better than losing the investment.

Short answer, don't worry about it. You won't see much of an increase.

around here (la jolla) i'm already seeing apartments selling for low-mid 200,000's as the flippers doug mentioned are finding themselves screwed.

They sell apartments?

...all over San Diego. They can;t give them away right now.

yup they're for sale everywhere, along with condos and townhomes

Guess I need to get with the swing of things. I remember apartments being something you just rented.

Condos=apartments you buy.

My townhome rent went down by $10 for the next 7 months. W00t!!

Condos=apartments you buy.

Ahhh... now it's all clear to me.