Updated almost 8 years ago on . Most recent reply
If market prices crash do rent prices also crash?
Suppose something like the 2007 housing bubble burst again, if I am invested in a cash flow property rather than a speculative appreciation property do I have anything to worry about? I mean, would I have to lower rent as the prices fall?
Most Popular Reply
It depends on the market , in L.A for example rents went up during the housing crash . Many people lost their homes and mortgages were harder to get but they still needed a place to live so more people rented and demand for rentals was strong .
You should look at historical rent prices for the area you are looking to invest in .
Rents can definitely go down but generally not as volatile as property prices can be .