Originally Posted by
typhoonpilot
I'd venture to say that rents are at their peak for the foreseeable future. Prices will be coming down significantly as speculators/investors are no longer able to sell their properties and are forced to rent them out. The amount of units coming on to the market at the same time the economy is in a recession/depression will keep rental prices down for many years into the future.
The rent prices at present are unrealistic and unsustainable. Along with a 50% decline in property values one would expect a significant decline in rental prices.
In theory yes - but..
One of the main reasons why people cannot sell is that buyers cannot get finance - so if they cannot buy then they have to rent which keeps demand (artificially?) high.
I would also point out that in the UK the sale price of houses has fallen dramatically over the past 2 years but the rentals rates have barely fallen at all.