My mom has had her two-bedroom apartment for ten years, and has so far only had two increases.

Rental prices throughout the Monterey Peninsula are on the rise for a number of reasons. I think one of the most pressing is that of current lending situation. Many of the people who were able to purchase an entry level home here in the past are unable to do so now given the tighter lender requirements (greater down payment, higher credit scores) and many who did purchase and can't afford to make their mortgagae payments, have been forced to sell or are being foreclosed on and are back in the rental market. Both scenarios have increased the number of renters looking for places to live.

Pacific Grove rental prices are rising due to the following influences:
City of Monterey conversion of 7 apartment complexes into condos (forcing renters out during conversion)
3 Pacific Grove projects turning apartments into TIC's (forcing renters out during conversion)
Increase in faculty at DLI (consult Dept of Defense for exact figures)
More listings for sale of current tenant occupied properties than at any time in the past 7 years

Maureen Mason
Realtor
Coldwell Banker Del Monte Realty
Pacific Grove, CA 93950
maureenmason.com

I am unfamiliar with the area but I can suggest that you contact an appraiser because they should know. This web site might be able to help find one http://www.appraisalinstitute.org/. Good luck.
Jeff Fox, Broker