Does Rent also Go down when Real Estate Goes Down?

[Adah N.]

This may seem like an obvious answer but due to supply and demand it may not be so white and black. Does rent drop when real estate prices drop? 

For those who were landlords or RE investing back then, did rent drop during the 2008 -2012 recession? 

[Nathan Gesner]

When the market drops, people can't buy houses. That creates more renters, which increases the demand for rentals, so rental values should increase. When the sales market is strong, more people purchase so there is a decreased demand for rentals.

In general, rent will not dramatically decrease like we experienced with property values in the 2008 crash. You may see small decreases of 5 - 10% but rent rates tend to stay stable and/or increase.

With that said, there are always exceptions and variables.