3 ms·
Interest rates go up, getting a mortgage becomes less affordable -> more people in the market for renting (in many areas, there's also a lack of rental housing
by butler14 3y ago
Interest rates go up, getting a mortgage becomes less affordable -> more people in the market for renting (in many areas, there's also a lack of rental housing stock)
Professional landlords have built empires on low interest rates -> interest rates go up -> landlords pass the cost onto renters (or for smaller landlords, exit the market, potentially reducing supply further)
- importantbrian 3y agoRent prices in Florida were skyrocketing long before interest rates started rising. Our last rent increase before we moved was going to be around 25% back when interest rates were still 0. If anything rent increases -- in South Florida at least -- are partly a zero interest rate phenomenon. There are a ton of half full midrise luxury condos that priced lots of people out of previously affordable communities built as the result of access to cheap capitol and money laundering. There was also the massive influx of people moving into the area during covid. All that to say rent prices in Florida are the perfect example of monocausal explanations for complex phenomenon almost always being wildly incorrect.