will increase in interest rates boost rental rates?

[Aaron Gordy]

It seems that rents will likely increase substantially if interest rates increase. That means that less folks will be able to buy houses and will become renters putting more demand on rental properties. Thoughts? In Austin, we are seeing alot of new inventory coming on the market so i guess its a wait and see situation. 

[Costin I.]

The rate increase is not creating more prospective tenants - the amount of people at one time is the same, and all of them are living somewhere already. It might cooldown the price of houses, but why would it have an effect on boosting rental rates? 

Now, if raising the rates creates a recession, and a housing crash, that might force many owners to dump theirs and go for renting, thus keeping the rents from falling or maybe even raising in such recessionary environment.

Otherwise, on the same idea, lowering the rates, would depress the rental rates? I don't think that happened in the past.

Rents are linked to available rental housing inventory. And to wages - which are stagnant. And to costs, which unless you have variable rate mortgage, are not affected by interest rates.