Why the plummeting homebuying market could spell disaster for renters

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The consequences of rising mortgage rates might affect even those outside the home buying market.

A"for sale" sign is posted in front of a home that is listed for over $1 million on April 29, 2022, in San Francisco.It doesn’t matter if you’re in the market for a home right now or not — everyone’s talking about rising interest rates. The Federal Reserve raised its rate three-quarters of a percentage point in June, the biggest increase in nearly 30 years, and after two years of a red-hot housing market, there are signs everywhere that home buying may finally slow.

Many of these consequences of rising interest rates, especially when coupled with high inflation, aren’t exactly surprising. What might surprise some Bay Area residents though, is the impact all of this could have on the rental market. If a seller can’t sell their home, they may decide to rent their property while they wait for it to sell, in addition to having to rent themselves, since in the Bay Area it’s rare to live in your home while it’s on the market. Moreover, those who were in the market to buy are now back in the rental market, perhaps looking to upgrade their space since they weren’t able to buy.

 

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Meh. Mostly quotes one Redfin agent for info and we all know how much Redfin/Zillow etc has been doing to manipulate the cost of homes…

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