It's almost totally true for homeowners who live in the "flooded" home, trapped and unable to move. For investors it depends if they can afford the loss from selling at below purchase, and how much profit they have to eat into. Large companies can afford to liquidate and leave the space temporarily, putting their real-estate funds into development or something other than retail rent. Small investors with only a few houses are the ones who most impact retail house rent (not apartments) and this is where the rent trap is, they aren't living in these homes (cancelling rent with ownership) but their reluctance to sell for a new reasonable price means their renters are denied a chance to get ahead.
As for new builds, much of that money is held by the large rental companies and needs them to transfer out of the rental space, which they won't do until the market looks sane. Maybe not as long as waiting for people to die, but still painful.
What a trap we built by trying to make our residences an investment.
As for new builds, much of that money is held by the large rental companies and needs them to transfer out of the rental space, which they won't do until the market looks sane. Maybe not as long as waiting for people to die, but still painful.
What a trap we built by trying to make our residences an investment.