Truth be told, if the price of the house continues to drop in price, it will be like this

Mondo Social Updated on 2024-02-07

When we are faced with the problem of difficulty in selling houses, the direction of the rental market will be seriously affected. So, will the rent skyrocket or **? Let me tell you a story to help you understand.

In 2007, many Americans found that house prices have been **, they no longer plan to buy a house, and those who originally had the need to buy a house just need to see that there is still room for housing prices, so they decided to wait a few more years to find better investment opportunities. At this time, a company called Lehman Brothers smelled a business opportunity. While no one is interested in buying a home, Lehman Brothers believes that if they can stock up on some apartments now, they may be able to make a huge profit.

As a result, Lehman Brothers not only supported a large number of commercial real estate developers, but also borrowed money from the market through various means, paid IOUs, and raised higher and higher interest rates, and even used other channels to raise a staggering $14.3 billion. However, as the U.S. residential market collapsed due to supply cuts, many commercial real estate projects that were originally under development eventually failed, and the ** market was also implicated, resulting in high-frequency consumption suffering a heavy blow. The situation quickly spread across the globe, and the United States and the world were caught in a deep storm.

Now we can see that institutions like Lehman Brothers have brought the crisis of the residential market directly into commercial real estate that might otherwise have escaped, and in turn affects all walks of life. And when we are faced with the difficulty of selling new developments, there will inevitably be some changes in the rental market. However, the situation becomes even more complicated when we are dealing with the influx of some greedy large institutions and corporations into the rental market. At this time, people's income, job stability and other issues will be challenged. Therefore, we need to look at these issues more cautiously to avoid greater economic and social impacts.

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