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Actually, I think you left out a category, which to me is:

"Short-term, I don't care, I am going to ride out any potential instability."

Essentially, we 1031 exchanged a significant part of our assets from fast-appreciating single family rentals into cash-flow positive 4-plexes in a retirement community last year.

It is not at all obvious to me that rents in the multi-unit rental market will follow the same course as SFH prices. A crash in the SFH market will tend to be self-sustaining. The reason is that lenders will tighten up on mortgages and start requiring higher down payments. One of the reasons people rent apartments in a multi-unit building is that they have no down payment.

Interestingly enough, foreclosures and defaults in the SFH market do not lead to a glut of rentals and a reduction in rents. Banks do not rent out foreclosures. The houses sit vacant. Same for new homes from builders, if they don't sell, they sit vacant.

In fact, foreclosures and bankruptcies increase the demand for rentals in the multi-unit markets, as families who have lost their homes (and have seen whatever down payment they once had evaporate) look for places to live. Their old single family houses have been removed from the rental market by forclosures.

Long-term, I expect housing will resume its upward trend.
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