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Updated almost 4 years ago on . Most recent reply

William Hinsche's profile image
William Hinsche's profile image
William Hinsche
  • Investor
  • from United States
  • Member since May 7, 2021
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User Stats

55
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11
Votes
William Hinsche's profile image
William Hinsche's profile image
William Hinsche
  • Investor
  • from United States
  • Member since May 7, 2021
Connect
William Hinsche
  • Investor
  • United States
11
Votes |
55
Posts
General Landlording & Rental Properties

Why does rent tend to stay flat when prices go up?

William Hinsche
  • Investor
  • United States
Posted

Hi BiggerPockets community,

My question is, Why does rent in a given area tend to stay flat while the property prices increase? In a seller's market, people can be bidding 25% over asking price, escalation clauses, the whole nine yards. Why does rent tend to stay flat, thereby decreasing cash flow/yield? Thanks for answering.

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