PS: Obviously, without income, the demand on all housing will soften…supply and demand determines rents (except in rent-controlled areas). Health of the housing market / economy is tied directly to employment.
If employment shrinks rents suffer (as in early 1990s) along with house prices. The upcoming house price correction hinges on the labor market;
– if unemployment stays ok then ~ 10% correction to reverse recent speculative price runup
– if unemployment like early 1990s (~8%) expect ~ 25% correction
– if unemployment like 1981/82 (~12%) national recession you’ll get your 50% correction!
