2006-08-07 05:56:42 · 7 answers · asked by mollyneville 5 in Business & Finance ➔ Renting & Real Estate
Not usually. Rent and mortgages are based on totally different markets. Would be nice though.
2006-08-07 06:01:35 · answer #1 · answered by kksay 5 · 0⤊ 0⤋
They can, but usually don't. It would seem that they are competing markets, but they actually feed off each other.
Most rental companies do not own their investments outright, but are using the real estate tax loopholes to shelter their income (perfectly legal and sound, and recommended by the IRS). The housing prices going down might actually invite more investors to purchase homes to rent out, driving rental prices up. Even falling interest rates don't always effect (hurt) the rental industry as it seems they would. Just because the interest rate is low doesn't mean the renter's credit score or income producing ability is any better.
Then again, falling house prices sometimes indicates a change in the market that could be for the worse. In that case, worsening infrastructure could force the rental prices to fall, as a matter of course, because vacancy rates rise to where the investor cannot maintain their investment (foreclosure pending).
To answer your question, not necessarily, but could, depending on the length of time and circumstances involved.
2006-08-07 06:17:05 · answer #2 · answered by brokerlauren 2 · 0⤊ 0⤋
IF housing prices went down, rental prices likely would too. However, the chances of housing prices going down is not good, unless you live in an area that has experienced very rapid growth recently (Florida, Vegas, California, NY, etc.). Those markets are overpriced and will drop, but the majority of markets are unlikely to.
It is more likely that when housing interest rates start dropping (who knows when that will be), rental prices will drop, as well. In this scenario people will be more likely to buy houses since they can get the same house for less money. In turn, apartment complexes have to lower their prices to attract tenants.
Just a heads-up, several of the major apartment REIT's (big apartment ownership companies) are now doing daily pricing. Archstone-Smith, Equity Residential, Camden Properties, and Post Properties are now changing their prices daily so check several times within a week and you will see different prices. Also, the lease term and move-in dates affect your lease rate.
2006-08-07 06:04:26 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Not usually, the interest rates has been low but going back up. The price of realor-state is always going up, Best investment there is. You might have to drive exra miles. But with the prise of gas it better to pay more closer where you work. Pem
2006-08-07 06:21:32 · answer #4 · answered by Patricia M 4 · 0⤊ 0⤋
No.
They go up.
When people can't afford to buy homes, they are forced to rent. Like anything else, when the demand goes up, so does the price.
2006-08-07 06:07:56 · answer #5 · answered by DAVID K 2 · 0⤊ 0⤋
Not usually. At least not as quickly.
Remember, the property owner still has to pay insurance, taxes, water & sewer costs, repairs & maintainence, and more.
2006-08-07 06:03:59 · answer #6 · answered by tweetymay 6 · 0⤊ 0⤋
haahah i wish thye would. sometimes u cna find a house to rent for cheaper then a apartment. lol
2006-08-07 06:09:45 · answer #7 · answered by kandlight1182 3 · 0⤊ 0⤋