[dudzik]

The fall in house prices will probably not affect the prices of rental units. The cost of acquiring a home should be roughly the same, considering an increase in interest rates.

Rental prices might fall if people are forced to sell their houses at lower prices. In my area, people buy houses on 30-year mortgages with variable rates and require an in-law suite to finance it partially. The margins are so thin that I encountered people who had to sell their homes because of increased property taxes.

[exceptione]

> Rental prices might fall if people are forced to sell their houses at lower prices.

How? I think the bank will just sell the house, possibly for a lower price then the market value. Then, the previous owners need to rent somewhere. As there are less people able to pay a mortgage, the more people need to rent.

[dudzik]

Good point. If someone is forced to sell their house and stays in the same area, rental prices should stay the same because demand remains the same. What would happen if an investor living elsewhere is forced to sell?