> At least in the US this happens due to rent control rules.
No way, the vast majority of the US has no rent control at all. Landlords can already raise prices whenever they want, it's always been legal. Despite this, most choose to put in 10% to 40% increase, every single year, anyway. - https://www.michiganpublic.org/economy/2023-03-22/as-housing...
> If they knew they can raise prices when needed, they could afford to lower prices in a downturn knowing they can raise later.
The only time a landlord will lower prices, is if a downturn is so severe that the Federal Government prevents landlords from accessing credit to wait out that downturn, and the landlord risks having to actually sell the property. (Which after 2008, it seems unlikely that the Feds would ever let the market correct again)
> Landlords can already raise prices whenever they want
Not sure how to interpret this response. I said "due to rent control rules". So this applies when rent control rules are in place and landlords cannot raise rents more than rent control allows. If you are in a place that doesn't have rent control, well then it doesn't apply.
> most choose to put in 10% to 40% increase, every single year
I suggest you do the math on this one to see if it possible.
Let's take the middle of your range, 25%. If a landlord raised rents 25% "every single year", a $2K rent would be $15k in just ten years. So, no, no landlord is doing that.
> Federal Government prevents landlords from accessing credit to wait out that downturn
Tell me more about this program where the government gives landlords credit to wait out the downturn? Not familiar with it.
No way, the vast majority of the US has no rent control at all. Landlords can already raise prices whenever they want, it's always been legal. Despite this, most choose to put in 10% to 40% increase, every single year, anyway. - https://www.michiganpublic.org/economy/2023-03-22/as-housing...
> If they knew they can raise prices when needed, they could afford to lower prices in a downturn knowing they can raise later.
The only time a landlord will lower prices, is if a downturn is so severe that the Federal Government prevents landlords from accessing credit to wait out that downturn, and the landlord risks having to actually sell the property. (Which after 2008, it seems unlikely that the Feds would ever let the market correct again)