Rent might drop but it will be associated with a lot of economic uncertainty which generally results in layoffs, preemptive price increases for goods, etc. The 2008 bubble in the US led to The Great Recession.
As for purchasing houses? Prices will likely drop significantly. But interest rates on loans and requirements to be eligible for them go up drastically because banks are hurting from all the foreclosures they had to eat.
Except that major companies understand that it benefits them to buy those houses. So expect Canadian Zillow to buy up a lot of the cheaper houses to turn into rentals and the like.
Nope.
Rent might drop but it will be associated with a lot of economic uncertainty which generally results in layoffs, preemptive price increases for goods, etc. The 2008 bubble in the US led to The Great Recession.
As for purchasing houses? Prices will likely drop significantly. But interest rates on loans and requirements to be eligible for them go up drastically because banks are hurting from all the foreclosures they had to eat.
Except that major companies understand that it benefits them to buy those houses. So expect Canadian Zillow to buy up a lot of the cheaper houses to turn into rentals and the like.
Prices aren’t going to drop because the moment they do, a corporation will swoop in and buy it to make sure prices stay high.
Sorry, this is the reality we have now. Every day people are paid to look at houses and buy anything even remotely under market value.