3 ms·

Maybe cheap money has caused increased wealth to those closer to the 'watering hole' ( capital flows ), thereby inflating rents in metropolitan areas close to s

Maybe cheap money has caused increased wealth to those closer to the 'watering hole' ( capital flows ), thereby inflating rents in metropolitan areas close to said 'watering holes'. If you're 'in' you can afford it. There are of course other major, possibly greater, factors like, NIMBY housing policies ( incl. rent-seeking boomers ).

pnutjam 9y ago
In my experience, you have more people renting homes that are 100% leveraged, so your paying their crappy mortgage, with some "upkeep" costs on top. If interest is higher, more people are renting houses with more equity tied up in the house, so their costs are lower and they rent cheaper.