Did rent prices drop during the recession?

5 Replies

Hello BP, I was wondering if you saw rent prices drop during the recession? For example if you buy a property now and in a few years the market drops will we see rent prices follow this trend, will they stay stable or will they increase? 

Thanks guys!

Originally posted by @Travis Howser :

Hello BP, I was wondering if you saw rent prices drop during the recession? For example if you buy a property now and in a few years the market drops will we see rent prices follow this trend, will they stay stable or will they increase? 

Thanks guys!

 Where?

Here's FRED, data from the St Louis Fed.  You can check area by area if you want.

https://fred.stlouisfed.org/search?st=rent+of+prim...

(Pick an area, click on "edit graph" and change "Units" to "percent change from a year ago" - negative is rental price decrease.)

Here is Atlanta for example:

Thank you Stuart this was helpful. It appears that everywhere was different however generally looks like many cities actually continued to rise through the recession. 

Rents in many markets increased during the housing collapse. Simple supply and demand. With the huge increase in renters, former homeowners became renters as they were forclosed on, that created higher demand for rentals, and rents went up.  

From my experience in Saint Louis rents remained stagnant during the recession.

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