So is it bad when rent is higher or lower than that 1% figure?
Million dollar condos in my area are renting as low as $2,700 a month.
So either massive increases in rent are due (which won't happen, because owners can hardly find tenants even at $2,700) or the value of the property needs a radical adjustment downward. Which it will get as soon as all of these 105% mortgages, interest-only mortgages, and other risky schemes get torpedoed by rising interest rates, and no one can afford to fake their way into a million-dollar home they can't objectively afford.