I heard an interesting item on the news today:  rents in the east bay are dramatically rising.   This is due primarily to the increased number of homeowners who are finding themselves in foreclosure, and are having to relocate to a rental.  This is a double jeopardy:  1) they are losing the home they bought, with the negative credit implications and 2) they are not going to get a “good deal” as the prices of rentals rise.  Additionally, obtaining a rental is not at all a simple process;  potential renters are coming to look at property with credit reports, references and deposit in hand.  Some attempt to circumvent the normal process of waiting by offering the deposit, first and last month’s rent right on the spot. 

     What an odd situation!  Here are hundreds of houses sitting virtually empty, not selling and losing value.  Home buyers have the opportunity to be very picky, yet it’s more difficult to obtain the funding.  And rents are rapidly rising!  The renter and home-buyer have switched roles!  My heart goes out to the renter and the seller.

     A positive side does exist in this situation.  As rents continue rising, the renter may decide to become a first-time home-owner.  These are definitely interesting times and bear continued watching as they unfold.