I don't think this is true, and why would it be? Unless you're in an area where the housing market is cliffed for some legislative or regulatory reason.
I have a friend who works in real estate and he tells me people in difficult circumstances pay a premium because of the risk of default and damage. The landlord needs more margin to cover those extra risks.
He also told me you could never make money at the bottom end of the market if you have middle class sensibilities. It's pretty ruthless at the bottom.
Right, but there are presumably people at all levels of risk, not just risky people who pay a premium vs non-risky people who don't. Reduced variance is good for landlords too, so there's definitely an incentive to accurately predict and make granular the risk profile/credit check/etc.
I have a friend who works in real estate and he tells me people in difficult circumstances pay a premium because of the risk of default and damage. The landlord needs more margin to cover those extra risks.
He also told me you could never make money at the bottom end of the market if you have middle class sensibilities. It's pretty ruthless at the bottom.