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Do you mean real-estate prices decrease? Or real-estate supply or demand? Price decreases: More people can buy homes and exit the renters market. Rent, in theo
by Ancalagon 4y ago
Do you mean real-estate prices decrease? Or real-estate supply or demand?
Price decreases: More people can buy homes and exit the renters market. Rent, in theory, should flatten/decrease. This may not be the case because as we've seen in the past couple years, corporate landlords are raising and holding rents in sync.
Supply decreases: Lower supply, same demand, rents go up
Demand decreases: Lower demand for real-estate should decrease prices as fewer sellers can sell at the price they bought at or at whatever price point they feel their homes are worth. This could take a long time to play out though. Lots of options for owners to hold-out on selling til a better market and many have very good interest rates on their homes with very little reason to move, especially for a much more expensive monthly payment. Anyways lower demand should in theory equate to increased supply, which should lower prices on homes and on rents. With the caveat again of the corporate landlord cartel.
- neom 4y agoEdited: price decrease.