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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (56324)	6/19/2006 12:06:13 PM
From: GraceZ	Read Replies (1) \| Respond to of 306849

Not necessarily. I have rental units myself and rents have been rising at a pace that lags house prices by quite a large percentage. The last unit I own I price under the rental market because I find stability in maintaining a good tenant for many years is worth charging slightly under market rent. Rent control works out great on a micro level but has the opposite effect on the macro level by removing supply as well as encouraging people to consume more housing than they would if they were asked to pay market clearing rates. On a macro level it makes rents less predictable.