Grand Rapids Business Daily

How does a recession and depression effect the possibility leasing a home?

A trusted financial adviser friend of ours says he and several of his colleagues expect the economy be in recession for at least another year and then possibly a depression for ten years. Given this scenario, would the price of leasing a home increase or decrease, and at which point? So in a market slump is it better to own a home or lease?

Public Comments

1. Well, according to the great depression everything deflates but so does the value of dollars themselves. Meaning you wouldnt have enough money anyway.
2. rents might go up at certain points in the cycle because banks will not rent their foreclosures and people with bad credit will be forced to rent. But most of the cycle the supply of rental will be high and the demand will be low. rents will go down. If you own a highly leveraged rent house you might lose it because you can't collect enough rent to make the mortgage payment. **************** The best time to buy is in a market slump. The best time to sell is in a market peak. But we can never know when those things are happening.