Oh yeah when it starts to tumble people jump out of the market. I probably wasn’t too clear in my thoughts. I meant that we have to wait for homes to bottom out before rent prices fall.
I understood what you meant. My point is that as people let their homes go to foreclosure, they become renters and then there are more renters than ever. Thus rents go up. The bottom of the market is when investors like Blackrock swoop in and buy all the discounted homes and jack up the rents sky high. It is what happened in 2008 and what will probably happen this time, too.
Although... this time, with the ability to work remotely via Starlink, people are not tied to a location (close to a job center or at least close enough infrastructure to get good internet) like they were in 2008, so where prices collapse may be different. Usually, house prices fall most in rural areas and bedroom communities, but this time the worst of the collapse may very well be city centers and people may go live in rural areas on RV's rather than rent. We'll see...
Rent prices actually go up in a down real estate market. A lot of people wind up abandoning their homes for assorted reasons and then become renters.
Oh yeah when it starts to tumble people jump out of the market. I probably wasn’t too clear in my thoughts. I meant that we have to wait for homes to bottom out before rent prices fall.
I understood what you meant. My point is that as people let their homes go to foreclosure, they become renters and then there are more renters than ever. Thus rents go up. The bottom of the market is when investors like Blackrock swoop in and buy all the discounted homes and jack up the rents sky high. It is what happened in 2008 and what will probably happen this time, too.
Although... this time, with the ability to work remotely via Starlink, people are not tied to a location (close to a job center or at least close enough infrastructure to get good internet) like they were in 2008, so where prices collapse may be different. Usually, house prices fall most in rural areas and bedroom communities, but this time the worst of the collapse may very well be city centers and people may go live in rural areas on RV's rather than rent. We'll see...