Actually that’s not true. Incomes have been growing much faster than rents over the last 2 years or so. And they did not double, at least not in the averages. But they did go up a shitload in 2H2020 and 2021 - 20-30% for that period in many markets. Too much for sure.
The issue for falling rents isn’t income. It’s too much supply. But starts have fallen off a cliff recently so the supply is getting absorbed and there won’t be much new supply coming before long. Housing economists are predicting significant rent growth coming in 27/28/29 because of the combination of falling supply and growing incomes.
And oh by the way, we all hear lots of talk these days that we need more housing to bring the prices down. Well guess what gets more housing built? Landlords and their capital partners believing there is blood to suck. Because we live in a world where housing only gets built if people think they can earn more money doing it than in some other endeavor.
You know what isn’t a good environment for new housing to get built? One where new supply is rampant and rents are falling. Weird paradox for sure.