3 ms·

Do rental prices ever drop ? I think they may increase slower but that's about it.

hodder 3y ago
Certainly. If supply were to increase faster than demand, pricing would fall in real terms. This has happened many times in history in Canadian municipalities.
- johnchristopher 3y ago
  I am happy for you. On western continental Europe where I live I never saw that. Houses where highways are getting built see their selling prices drop though.
Slurpee99 3y ago
Of course they can drop, even in [insert your country here] but look worldwide for more extreme examples.
bgirard 3y ago
Also an increase below inflation/wages is a drop, particularly if sustained over a long period of time.
paxys 3y ago
Rents in San Francisco are well below what they were in 2015-2019.
- johnchristopher 3y ago
  I wonder how rental market is and what it feels like elsewhere. Here it seems to move at a glacial pace. Mayors throw parties when a block of 4 appartements is built (never mind the destroyed 20 rentals in the process, killed the local shops for the 6 years completion took, but that's another problem).
dimask 3y ago
Well in places in the middle of economic crisis and where people become poorer with decreased salaries and increased unemployment, it has happened actually, because the alternative would be the landlord to have to pay maintenance and taxes anyway. But probably not right now in the west.
- johnchristopher 3y ago
  We are slowly getting there in the country I live in: they are enacting laws to tax empty rentals and hiring people to check utilities usage and physically mapping empty floors from the street.
Tiktaalik 3y ago
It's pretty rare to see prices go down. I think it's most likely when the market really lurches due to some economic shocks and there is a short term over supply of housing, but the market corrects pretty quickly. What is more common in a healthy housing market with lots of vacancy is that prices continue to go up, but below inflation.

Certainly. If supply were to increase faster than demand, pricing would fall in real terms. This has happened many times in history in Canadian municipalities.

johnchristopher 3y ago
I am happy for you. On western continental Europe where I live I never saw that. Houses where highways are getting built see their selling prices drop though.

Slurpee99 3y ago

Of course they can drop, even in [insert your country here] but look worldwide for more extreme examples.

bgirard 3y ago

Also an increase below inflation/wages is a drop, particularly if sustained over a long period of time.

paxys 3y ago

Rents in San Francisco are well below what they were in 2015-2019.

johnchristopher 3y ago
I wonder how rental market is and what it feels like elsewhere. Here it seems to move at a glacial pace. Mayors throw parties when a block of 4 appartements is built (never mind the destroyed 20 rentals in the process, killed the local shops for the 6 years completion took, but that's another problem).

dimask 3y ago

Well in places in the middle of economic crisis and where people become poorer with decreased salaries and increased unemployment, it has happened actually, because the alternative would be the landlord to have to pay maintenance and taxes anyway. But probably not right now in the west.

johnchristopher 3y ago
We are slowly getting there in the country I live in: they are enacting laws to tax empty rentals and hiring people to check utilities usage and physically mapping empty floors from the street.

Tiktaalik 3y ago

It's pretty rare to see prices go down. I think it's most likely when the market really lurches due to some economic shocks and there is a short term over supply of housing, but the market corrects pretty quickly. What is more common in a healthy housing market with lots of vacancy is that prices continue to go up, but below inflation.