Just based on the numbers you presented, the price sounds inflated for the area.

Just don't rationalize lifestyle inflation with the extra money.

So many folks just biding their time who still can't afford the home they purchased in an over inflated market.

It basically means that the landlord is only allowed to raise the rent at the rate of that year's inflation.

As an extension to this question, should inflation in be included in any of these calculations?

Insane right but when you unpack the numbers it makes sense. Take the Valley for instance with 1.8 mil residents...they built only 980 rental units. I have heard LA lagged behind SF, outside of an earthquake or disast...

Is it having a significant impact by inflating prices, or is it fairly minimal?

I own a home up valley I rent out and live in another located in the Heights in town.I have looked for multifamily property recently in Portland and it all has looked pretty inflated to me.I am currently looking in The Dallas as I feel there is greater potential for growth and there are still deals to be had there.Are you invested in Portland?

You should be developing strategies to get in front of owners/sellers directly.As far as who these buyers are, this entire year has seen a lot of cash move into real estate:1031's finally able to get a fair price for their relinquished propertiesFlight from the inflated stock marketRace to lock in the fleeting historically low interest ratesPeople seeking tax benefits of real estate not available in other assetsForeigners sick of the abysmal returns on treasury notesThe good news is that very few of these buyers are talking to the owner of the fourplex down the street and establishing a rapport for a property that is not on the market.Good luck.

I guess this is true for all SFR... but it seems that if you can get in at the right price, people will pay very inflated rental prices to live in the Forest Hills School district which gives a property a better chance of cash-flowing.