It seems more and more individuals would be paying cheaper rent right? More houses that are in foreclosure etc, could be turned into rental properties, or rooms that are for rent?
2007-09-17 09:02:37 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Good question! In the long run, there is a relationship between property values and rents. But not in the short run. The reason is that if your landlord bought when house prices were high, his costs will be high and stay high, and so his rents will have to be high in order to cover them. And a lot of landlords will be in this situation. So I don't expect rents to fall very much. In fact, the opposite may be true, because if people can't afford to buy their own house, they have to stay in the rental market. If there are lots of tenants looking for places to rent, it will keep rents high.
2007-09-17 09:10:59 · answer #1 · answered by AnOrdinaryGuy 5 · 0⤊ 0⤋
Since the prices of houses are dropping, those selling are having a hard time onloading these properties (and making a profit or even what they owe) thus, they are attempting to rent them and cover their mortgage payments. Also, since it's harder to get a mortgage these days, there are more people in the rental pool. Law of supply and demand says higher rents.
2007-09-17 09:14:29 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Supply and demand more people need places to rent now, so prices go up, not drop. there are more houses out there but nobody is buying.
2007-09-17 11:36:39 · answer #3 · answered by Pengy 7 · 0⤊ 0⤋
Yes but...home prices will rise again plus, electricity hasn't gone down or the cost of gas or the cost of maintenance or the property taxes etc.
2007-09-17 09:11:49 · answer #4 · answered by tamarack58 5 · 0⤊ 0⤋