[eru]

> Likewise, decline in real estate will force rental property owners to sell up, reducing the supply of rental properties - good news for renters looking to make the jump to home ownership but less so for anyone not in that position.

Shouldn't make too much of a difference? The total number of houses and households stays the same after the sale. Basically, you are right, for every such transaction you describe, one rental unit is taken off the rental market, but also one household exits the rental market, too.