It was caused not by a jump in demand, but by a contraction in supply LAST week, I suggested that the private housing oversupply may have been understated. This is because units that have been bought by investors can still be considered as part of the housing supply until they are resold or are tenanted. If the rental income cannot cover the mortgage payments and if the owners are highly geared, then...
Home Rental Market
Barclays Capital says market has peaked, rent to drop 5% this year and more in next 2 years Have home rentals peaked? With a looming rush of new supply, one bank is predicting that they could fall by as much as 25 per cent by 2010. That is good news for tenants, but not so good news for landlords, who saw private rentals surge an average of 41 per cent last year. This bold forecast comes in a report...