If houses are so unaffordable, why aren’t rentals rising?

I've been following Erwin Rode in SA, he seems to be fairly on the ball.

He also doesn't work for a mortgage bank and so feel inclined to tell people that now has never been a better time to buy... blink.gif blink.gif

In fact he's been telling people that the best way to take advantage of the housing bubble is to rent.

QUOTE
Scraping together every bit of credit you can find to invest in a house or flat to let, is not the wisest investment decision to make right now, warns property economist Erwin Rode, CEO of Rode & Associates property valuers and economists. Instead, he advises, the best bargain out there in the current residential property market, is to rent a place in which to live, rather than buy. The proviso is that the tenant must religiously invest the difference between his rent and what his instalment would have been if he had bought.


http://www.rode.co.za/news/article.php?ID=2125


Here the Moneyweb team dissect The Economist article (18-24th June). No guesses for the views taken by the Chris Hart representing the bank...

http://www.moneyweb.co.za/moneyweb_radio/m...hour/452629.htm