Re:US Housing Affordability Hits Worst Point in Nearly Four ...
by civilitty on Monday August 21, 2023 @02:22PM
(#37213374)
> And why can't they lower their prices?
The properties are valued based on the advertised rental rates and if property values fall, they can have significant down stream effects on financing like banks requiring the property owner to put up more collateral next time they need a loan, whether it's to build more housing somewhere else or pay for maintenance that has large upfront costs.
The properties are valued based on the advertised rental rates and if property values fall, they can have significant down stream effects on financing like banks requiring the property owner to put up more collateral next time they need a loan, whether it's to build more housing somewhere else or pay for maintenance that has large upfront costs.