The Chart below from the WSJ says it all. Rent prices are up while vacancies go down. It is a simple supply and demand concept with the rental market right now.
I would suspect that even those who could qualify for the ultra low mortgage rates right now are still gun shy about entering into the housing market. Prices can and likely will continue to fall as we try to find the bottom and stabilization.
Like anything in the housing market conditions are very local. so what is up in one area may be down in another. I'm sure that there is a correlation somewhere with housing and the job market.
I believe that data such as this support our strategy of shorting the home builders and going long a company such as Lowe's and Home Depot that would be a play on the renovation space.
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