Rents for apartments and houses on the Island have come down by as much as 25 percent in the last five years.The demand for larger rental homes has also fallen and inventory is building in the East and West Ends of the Island as more tenants look to move closer to town.This according to a new report by Rego Sotheby’s International Realty.The report states: “The 2011 activity to date indicates that the residential rental market has experienced a reduction in rental values on average of 10-15 percent. As a whole between 2007 and 2010, the rental market saw on average a 20 to 25 percent decrease in rental prices due to gradual decrease in demand and more supply of homes.”In the executive rental market, the report notes that an average home that rented for $20,000 in 2007 is now securing $16,000, representing a 20 percent drop.“Homes that were commanding rents of $15,000 are realising values of $11,000 to $12,000 - a slightly higher drop closer to 25 percent and more.“The demand for larger homes has decreased as the volume of new executive tenants has decreased. In addition, the upper three-bedroom executive level - $12,000 and up - has had an influx of supply as families have chosen to return home at the end of the school year.”Daina Outerbridge of the Rego Sotheby’s Rental Department said the rental market has seen a definite shift of location trend: “With increased inventory on the market, and prices dropping, more tenants are taking the opportunity to move closer to be more centrally located to Hamilton, leaving more vacant inventory toward the ends of the island.”From 2008 to 2011, rental inventory has been taking 30 to 40 percent more time to rent on average, the report notes.In the entry to lower rental tier, the report says: “The pricing of these units are dictated by Government regulations and not driven by the demand in the market. Smaller one bedrooms have experienced a decrease in value up to 20 percent as demand continues to decline.“The lower end of the market inclusive of rent control properties continued to feel a small impact from the downturn in the market as increases are minimal and generally below market rate.”