It is what markets are willing to pay. Rent is outrageous, but there are also people in college or just out of college who doesn't mind having a few roommates.

It is what markets are willing to pay. Rent is outrageous, but there are also people in college or just out of college who doesn't mind having a few roommates. My friend's old studio was 1600, and was replaced by two college guys paying 1800. Not that I'm happy about it, but it is what it is. Additionally, it depends on how you track "rent" going down. Prior to the dip, the rents also required an agent's fee, which is easily a month or two's rent. I think more places nowadays are without these fees, so it is a little bit cheaper.