For flippers, using leverage, a sudden drop would be a disaster.

.- Due to the low-interest rate, the home suddenly becomes very affordable even when the price is going up because we finance it for 30 years.

Don’t forget, you‘re saying rent is up 30% ($300/mo) this year. that’s only a 25% increase next year and suddenly your $225/mo positive, $325 if you don’t have to pay the PM again.

Top 10 Markets With the Largest Recent Rent GrowthA look at the cities with the highest percentage of rent growth over the past five years, along with their struggles and successes.In every city, rent growth is fueled by the same things: employment opportunities, population surge and housing demand.

Of course you can blame this on a variety of factors -- overpricing, raising interest rates, 1,000+ new rental units being developed in Cambridge over the last year and upcoming year(s), surge of interest in multifamily investing, etc.

But a particular city within the county has experienced significantly higher rent growth than other similar cities in counties with growing populations but stagnant rents for the past 20 years (an extremely common trend in the midwest, prob not columbus though).Then there's the "that city's population declined 10%", but further investigation shows an environmental crisis caused 10% of the housing supply to be deemed uninhabitable in the area... causing a population to decrease, but a massive surge in rental demand and market rents, but not an increase in value because investors see a surface level statistic without truly understanding the market dynamics, or looking at direct indicators of an asset's performance (rental demand) instead of indirect indicators (population growth).That last situation has actually happened to me, and I managed to grab over 60 small MFR buildings at  15-20 caps over about 2 years and sell them at 10 caps.

Lots of companies that surged during the pandemic Why would the housing market be any different?

I believe it would definitely spark interest in the area because all of a sudden there would be demands for all kinds of new businesses and what not.

All of a sudden their qualifying investment opportunity doesn't look so hot. 

Deal with it today so she has time to adjust if necessary, don't wait until she's under the gun at lease signing and spring this on her suddenly.