Rental prices lag behind property purchase prices. Example, real estate became very cheap to purchase so the flock flew into buying properties. Now, buying property is getting more and more expensive so the flock is starting to collect in the rental market. We are at a point in the transition stage where rental property owners are either trying to sell or rent out their “investment”. When they rent, they’re trying to rent at a price that would reduce the cash flow bleed. This is a short term solution however and is not sustainable. By reading everyone’s views on this forum, it clearly shows that the average renter is not willing to pay for such a high rent and will either continue looking for a cheaper deal, stay where they are at or move away. Either way, the prices of rents will have to adjust to the renter’s demand not the owner’s need to reduce their cash flow bleed. Rents are as cyclical as property prices and are showing a deviation from the mean at this point. Hang in there, things will change for the better.
