There will always be people looking to rent regardless of price or interest rates.
Many people cannot qualify for a loan so it’s pointless to compare rent vs. buy.
Many other people just don’t care.
Market rent is market rent, period.
Anybody who bases what rent should be based on their payment is a fool.
If interest rates were higher, I don’t see how house prices will hold up. There will be a drawn out period of denial, but reality will eventually win. It will be even more difficult to qualify for a loan.
The auto industry has sold millions of cars based on nothing more than the monthly payment.
The housing market has followed this foolishness.
Most people do not care how much they are paying for a house or a car, they only care about their monthly payment.
Millions have become complacent about the stock market & housing market. If/when the next crash occurs, 99.9% of people will be saying “Nobody saw this coming”
If you do a search online for $3500++ a month rentals, in many cases it’s much cheaper to rent than to buy. The market rent does usually not increase proportionately based on the increase in value of a house.
If home prices did fall, market rent probably wouldn’t change much.
