Crash/Downturn... Crash/Downturn... But what if you're holding?

[David Mathews]

Ok it's all the buzz that we may be looking at a market correction. Some say crash. Some say downturn. Some say recession. 

As a buy and hold investor with mostly single family with a few small multifamily, no matter what term you call it, shouldn't the current political/economical environment be a recipe for more demand for rentals? My take is that as the interest rates climb and the real estate market cools due to lack of buying power wouldn't that create more tenants who are in limbo waiting to buy a home?  So why am I reading about and personally experiencing less traction with listings than say.... 6 months ago for the same type of listing?

[JD Martin]

Too many factors to give any kind of accurate answer. C class housing already holds a lot of bubble people. It's why I like B class. There's somewhere for A class renters to fall to in tough times or C class to climb to with lower prices. A lot of A/ B housing tenants will fight like hell to avoid C class housing. They value good schools, safe locations free of crime, etc. They're more willing to sacrifice elsewhere to maintain quality housing.