Three months free rent. iPods. And a market in freefall. Welcome to Phoenix, where they can't give homes away, and they can't rent them out either

So what happens to a town when the industry that makes up 40% of its economy implodes in historic fashion?

What happens when hundreds of thousands of illegals who built the unwanted homes pack up and go home, and tens of thousands of realtors, mortgage brokers, appraisers, builders and other REIC lose their jobs?

What happens when the mortgage fraud is shut down?

What happens when home after home after home after home is empty and unwanted?

What happens when home prices crash yet another 22% in 12 months and rents drop another 9% year over year?

This is what happens. And no, year-round-golf and pro athletes didn't matter.

Apartments offering freebies, other deals

Renters rejoice - Apartment owners are dangling freebies in front of new tenants who sign 12-month leases.

One company, Mark Taylor, is even going so far as to offer a free iPod, a $25 iPod tunes gift card and two months of free rent to new tenants who lease any apartment in its 34 Valley complexes, including eight in Chandler, four in Tempe, four in Ahwatukee and two in Gilbert.

Renters can thank the struggling real-estate market and its deflated housing prices, increased foreclosure rates and depressed rents on single-family homes, condominiums and apartments. Add to that the condominium-conversion flop, which has led to condos reverting to rental apartments.

"This is a great time to be a renter," said Pete TeKampke, a commercial real-estate broker and board member of the Arizona Multihousing Association.