Recently a friend of mine had his rent increase from $580 to $780 in one month. When talking to the management they said that they understood it was a lot but the rental market has changed. They didn’t budge from the increase. He is now buying a house.
Our boom started when some higher priced apartments rents weren’t far from the mortgage of the average house. When the step is that close, home prices will jump. There were many homes that you could buy and rent for almost a break even cost. Not long after that situation happened the boom followed. That gap is what will control the prices. It is like a rubber band stretching out and now it is pulling back in.