Will falling house prices also drag rents down?

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By Leith van Onselen

The CEO of ASX-listed portal rent.com.au, Greg Bader, has predicted that rents will soon follow prices down:

“In isolation, house prices falling does not impact rents,” Mr Bader said. “But what tends to happen is that people put their properties on the rental market to get a return rather than let them sit idly. So there’s more available stock and this flows through into lower rents”…

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.