Surprising to see such strong conclusions regarding the rental market without even one reference to the 50% or so rental properties which are being subbed up by the State. What happens if the budget see rent supplement seriously cut? A huge artificial floor would be lowered a notch.
Cillian,
Thanks for that comment. My next post is actually about that very topic and I’ve mentioned it before when talking about the rental market. My overall conclusion here will largely be unaffected – if price floors are not binding for suburban family homes, their removal will have no effect. But, particularly when looking at the issue, I’m increasingly convinced that at cheaper ends of the market, there will be a definite impact on rents – and thus, given I believe in the rent-house price ratio – on where prices will level off.
Ronan Lyons and time to face reality! | Machholz's Blog ,
[…] You may view the latest post at http://www.ronanlyons.com/2011/11/15/time-to-face-reality-as-rents-start-to-rise-for-family-homes/ […]
Cillian ,
Surprising to see such strong conclusions regarding the rental market without even one reference to the 50% or so rental properties which are being subbed up by the State. What happens if the budget see rent supplement seriously cut? A huge artificial floor would be lowered a notch.
Ronan Lyons ,
Cillian,
Thanks for that comment. My next post is actually about that very topic and I’ve mentioned it before when talking about the rental market. My overall conclusion here will largely be unaffected – if price floors are not binding for suburban family homes, their removal will have no effect. But, particularly when looking at the issue, I’m increasingly convinced that at cheaper ends of the market, there will be a definite impact on rents – and thus, given I believe in the rent-house price ratio – on where prices will level off.
Rent supplement: time for taxpayers to use their market power | Ronan Lyons ,
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