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by exceptione 1279 days ago
> Rental prices might fall if people are forced to sell their houses at lower prices.

How? I think the bank will just sell the house, possibly for a lower price then the market value. Then, the previous owners need to rent somewhere. As there are less people able to pay a mortgage, the more people need to rent.

1 comments

Good point. If someone is forced to sell their house and stays in the same area, rental prices should stay the same because demand remains the same. What would happen if an investor living elsewhere is forced to sell?
If someone is forced to sell their house and stays in the same area, rental prices should go up I would say.

As seemingly everywhere around the globe interest rates have gone up, the influx of new home buyers have gone down. Those people have to compete with each other at the rental market. Unless your country is able to create a new big supply of rental homes to somewhat balance the market, the rental price is definitely not stable, but trending upwards.

In the Netherlands we are getting stricter rental controls to keep the rental price to not increase that much. Some people are sitting between a rock and a hard place now: not able to buy, not able to save due to high rents.