Will higher interest rates increase rents?

[Brendan Chase]

My general thinking is that higher interest rates will make buying a home that much more expensive. Are people likely to rent instead of buying with high rates? Will that intern force more people into the rental market, causing higher demand?

[Russell Brazil]

Higher interest rates are a reaction to inflation. 

The largest component of inflation is rent.

So will higher interest rates correlate to higher rents? Yes.

Do higher interest rates cause higher rents? No.

Do higher rents cause higher interest rates? Partually yes.

Always remember, the dog wags the tail.....the tail doesn't wag the dog.