March 12, 2023

How does a poor economy affect rental prices?

The article discusses how a weak economy can affect rental prices. When economic conditions are weak, people struggle to afford rent payments, resulting in less demand for rental properties. This leads to a decrease in rental prices. Additionally, when the economy is weak, incomes tend to be lower and financial institutions have stricter lending standards, making it more difficult for landlords to borrow money to purchase properties. As a result, fewer properties are available, which can also drive down rental prices. In conclusion, a weak economy can have a major effect on the availability and cost of renting a property.