4 ms·
Rents will inevitably decrease. Landlords won't willingly drop their asking rate, and in most cases wouldn't be able to do so as their mortgage is separate fro
by highwaylights 4y ago
Rents will inevitably decrease.
Landlords won't willingly drop their asking rate, and in most cases wouldn't be able to do so as their mortgage is separate from the market value of the property, but that cuts both ways - the market doesn't care about the landlord's mortgage any more than it cares about your ability to make rent in a month. The asking rates for rent will drop when landlords are forced into it or repossessed.
- listless 4y ago> Rents will inevitably decrease What indicators do you see to make this look likely? It seems to me that if you take home ownership off the table, you increase the number of renters which in turn increases demand. Rising rent seems inevitable at least in the short term. People gotta live somewhere and increased interest rates means less new construction of newer rentable properties - not like the US is any good at building affordable housing anyway.
- zeroonetwothree 4y agoBuying homes is a substitute good for renting. So if buying becomes cheaper, it will decrease demand for renting. Of course it's unclear if buying is actually cheaper now, since sales price is only one factor.