Rents much stickier, less volatile than housing prices. Pretty interesting. I would guess because there is more leverage in the system.pic.twitter.com/4u34hFpPUq
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Very interesting! What about things like rent control? How would that affect this? Do you mean by leverage that it's much easier to change rents than buy/sell real estate?
AFAIK rent control is not prevalent enough to matter (1% in NYC). TBH I don't know why, but I would say: 1. Homeowner loses job during recession, skips on mortgage payments, bank takes control of house, sells it ASAP lowering prices 2. Speculate through buying not renting
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3. rents less variable than housing prices...you can reduce house price overnight 4. homeowner with fully paid house who loses his job will sell his house By leverage I meant #1
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All sounds plausible, thanks!
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