[nostrademons]

Likely people will take their houses off the market and rent them out. With mortgage rates going up and liquidity drying up, a lot of prospective buyers are deciding they're going to sit tight in a rental. That puts upward pressure on rents and gives an incentive for sellers whose desired price can't be met with the new rates to just sit tight and collect rental income.

Same thing happened when buyers disappeared in 2020 - most of the more marginal homes just got taken off the market, and either rented for a year or given a fresh coat of paint and some renovations to sell for a few hundred K higher in 2021.