And yes, rents are falling, not rising

Despite the pressure for property tax hikes in Hoboken to pass through into rents, demand on rents is falling with equal justification to sales. In any "normalized" supply/demand environment, rental rates would be pressured upward by holdout buyers. And this is despite an enormous hike in maintenance costs for owners. Property taxes are just one leg of the stool falling apart.

This is not a market that's historically comparable folks! But that debate has been put to bed already. Let's move on.

The forces are simple - disinflation - through lost employment, inflated relative costs (bubble) and excess inventory. Those who can't sell at their unmarketable ask prices are justifying their purchase by negative cashflow through renting their units. Get a brain folks! This blog has been dedicated to the "emotional" misconception of real estate ownership.

Looks like we'll be posting the same stuff with a different angle for a long time!
As I have disclosed before, I am a property owner with great disdain for the advice given by local realtors.

FYI, here's a recent BusinessWeek article on the rentals problem:

Rents Drop Nationwide as Vacancies Spike

Good news for renters as landlords are forced to offer discounts to keep their properties occupied

http://www.businessweek.com/lifestyle/content/jan2009/bw20090122_828698.htm?link_position=link13