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Rent is set through competitive pricing. If suddenly the wage floor fell out of the service industry then rents would fall too. This is economics 101.


Yes and no. Among the problems with rent are that there is a low level of switching between owner-occupied and rental housing in many markets. In the case of condominiums, especially, HOA restrictions on renting out a property. This is also seen in REO (bank-owned) housing, in which what could be offered as rental units are kept off the market to support both higher rental rates and housing prices, largely as a hedge to support bank asset valuations (and maintain bank solvency).




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