DarnDirtyApe
Active Member
Rents never go down? They are down 10-30% in London in the last six months:
http://www.smh.com.au/world/rentals-fall-in-a-swamped-london-20090320-94f2.html
Since rents are based on the actual cashflow that tenants can afford, they can't be manipulated through interest rate changes like mortgage rates can be. If unemployment goes up and incomes go down, rents will follow. We've also had a huge increase in the supply of rental condos in the last few years, and a shrinking pool of renters thanks to the recent construction boom.
As anecdotal evidence, I am moving but was offered a 10% discount on my rent from the current landlord to stay in my current apartment.
http://www.smh.com.au/world/rentals-fall-in-a-swamped-london-20090320-94f2.html
Since rents are based on the actual cashflow that tenants can afford, they can't be manipulated through interest rate changes like mortgage rates can be. If unemployment goes up and incomes go down, rents will follow. We've also had a huge increase in the supply of rental condos in the last few years, and a shrinking pool of renters thanks to the recent construction boom.
As anecdotal evidence, I am moving but was offered a 10% discount on my rent from the current landlord to stay in my current apartment.