Increased Rent Prices: When properties are appraised at inflated values, landlords often raise rents to cover higher mortgage payments, leading to unaffordable housing costs for renters.

Limited Housing Supply: Overvalued properties can deter new developments or renovations, as investors may hesitate to build affordable housing in a market where prices are artificially high. This reduces available options for renters.

Market Instability: Inflated property values can create bubbles that eventually burst. When prices drop, landlords may increase rents to recover losses, putting additional financial pressure on renters.

Reduced Negotiation Power: In a market where property values are inflated, renters may find it harder to negotiate lower rents or favorable lease terms, as landlords can justify high prices based on the perceived value of their property.

Displacement: As rents rise due to overvaluation, long-term renters may be forced to relocate to more affordable areas, leading to displacement and loss of community ties.

Economic Inequality: Overvaluation can exacerbate economic disparities, as lower-income renters are disproportionately affected by rising costs, while property owners benefit from increased equity.

In summary, overvaluation of property values creates a ripple effect that makes housing less affordable and accessible for renters, leading to broader social and economic challenges.