Will rents drop due to unemployment?

[Pete Storseth]

I'm looking at a rental property in Kingwood Texas. Its above my target price range but the upside is too good to pass up.

With unemployment so high I am nervous about my rental pricing. Do you think rents will be lowered by other landlords to avoid vacancies?

[Jay Hinrichs]

Originally posted by @Bryan Blankenship:

@Pete Storseth Nah. If anything, rents may go UP. If more people turn into renters/tenants, there's more demand in the market, which often will drive prices up a bit. The last recession is proof of that, at least for most of the country.

Bryan I dont know about that..  this is not the last time..  were you had so many displaced owner occ folks.

My view or best guess is if you do have vacancies which could happen because these folks are not going to buy a home.

there could be a lot of move in specials and lowering of rent at least for a while.

agreed on the owner contracts as lenders have already left the non owner occ non QM space in droves.. 

just a guess is all.. will see how it all shakes out.