4 ms·

The rents are not getting cheaper so I believe the sale prices won't go down either.

• parineum 4y ago
  Rent competes with mortgage payments not housing prices. Interest rates are up so payments will go up unless prices come down.
  • xt00 4y ago
    Not sure how it is globally but in the US the logic here is that if the owner is paying a mortgage on the house, then the renter should cover that mortgage and then some for a profit. So that would imply the renter can afford the mortgage but potentially not the down payment -- of course there are many exceptions like people who want to rent for a short time to be in a particular neighborhood for their kids school or whatever. But I do wonder if there was some way to decouple this connection between mortgage payment per month vs. rent price. No idea on a solution. I wonder if somebody has built up a map that shows how many houses are rentals in a particular area vs. owner occupied -- might be interesting to understand that ratio vs. how housing prices trend.
    • kingnothing 4y ago
      Expanding on that logic a bit, you may be able to cover the mortgage from 5 or 10 years ago when the landlord bought the house, but not today. Or you may not want to lock yourself to one area for 5+ years, so you choose to rent instead of buy. Or you may not want the hassles of homeownership.