The Merc Sunday had a front-page article on how home prices in the Bay Area continue to rise dramatically. Then yesterday, I get notice from our apartment complex saying that our lease is up soon, and they’re offering a new one at a reduced rate. 2nd year in a row rent’s gone down.
I took zero economics classes in college so I know nothing, but I don’t see how these two things, falling rents with rising home prices, are sustainable. There’s got to be a real estate bubble in the Bay Area, right? But what will pop it? No clue.