[sytelus]

It won’t. Real estate is on track for at least 20% crash from here. People with 3% rates don’t want to sell and move to 7%. So, they are renting out at loss and therefore renting is becoming amazingly cheaper compared to buying. This further reduces demand and increases supply and it’s a classic recursive cycle that will only accelerate as rates will go up even more for next 6 months. My advice would be to rent house of your dream for next year while housing crashes. The best time for buying would be when interest rate hits below 4%.

[quonn]

Why would renting become cheaper? Most people have told me that there will be less people buying so more are renting, therefore rental prices go up. Right?

[bequanna]

The number of households artificially increased as a result of student loan payment deferments and the general COVID free money bonanza. More households = more rental demand = higher rent.

Expect that to revert to the mean (people move back in with their parents, get roommates) if this is a long, deep recession. Less demand = lower prices.

[factsarelolz]

Right. Rentals are scarce and sky high in my area.