Hi furniture
Theory is fine but in practice if the prices of houses where to drop 20% rents would ALSO go through the floor because the demand would also drop, people share, people move to a cheaper property, people buy, people move in with mum and dad
What controls rents is what people can afford, nothing to do with the value of the house so if prices of homes were to drop big time people would lose their jobs, the economy in general would take a beating and people would not spend money, certainly they have never in the past and will never in the future pay a higher rent under these conditions
