Rents to 1991 prices ...
in London on commercial property.
I suspect rents will be falling in places where they have gotten out of line with affordability, whether to rent a home or to operate a business.
Vancouver is an economy to look at because of the high real estate values for years. It first went through a comparable bubble from 86 to 93. Essentially if you were in the housing market before then Vancouver has been a great place and affordable place to live. If you did not, well, this where an enormous division of wealth has occurred. Those who were not in the housing market have simply seen a higher and higher part of their income going to housing.
The economy has stagnated ever since. There has continuously been a well educated population that has been under employed and wages or buying power has been declining since the 80s or the 79 to 81 housing bubble. The earlier housing bubble had housing prices correct back to affordable levels. The 86 to 93 bubble had no such correction and I would attribute that to Greenspan's meddling in the market and stepping interest rates down continuously over a 20 year period.
But now the consequence of declining buying power and over valued real estate is playing out. I did an earlier blog on this really bad research that was saying Vancouver, the most expensive city in Canada by about 20%, was not as over priced as cheaper cities because of the higher rents.
Rents are going to get back into line with what is affordable based on income, as will housing.