re: Houston - rent or buy

rgarding NY and Cali people, Absolutely. I remarked about it earlier in my critique. They are used to higher prices and wildly fluctuating markets. Alot of cali and nyc investor money is involved with these builders and they are making bank. Once their ROI begins to fall, they will begin to pull back and go to the next hot market.

People are getting hung up on these rental rates being higher than a mortgage payment. Couple that with a good amount of young professionals making good money(mom and dad often times helping with downpayment if needed), prices will and should rise.

My argument all along has been that supply will catch up to demand, Couple that with a glut of new apartment complexes bringing rental rates down for both apartments and investment properties, with the big x factor of mortgage interest rates going up. With all of that, you have a good formula for a bubble to deflate. but it wont pop in Houston.