[energy123]

It would, but I believe the cause and effect is roundabout.

The first thing to go down will be rental yields, because those are more directly and immediately impacted by real market forces (number of renters versus available housing stock on the rental market), instead of speculation or the wealth effect or chasing a store of value, which are factors that drive the price of housing ownership but don't drive rents.

After rental yields decline, housing as an asset class will be less lucrative and higher risk compared to the cost of capital, which then causes an unwind as investors move to other asset classes.

[xnx]

It's weird, because some areas with the highest density also have the highest rents (e.g. New York City).