^ Not necessarily. There will be a lot of inventory for rent on the market as people upside down can't sell without brining huge dollars to the table to close.

If anything, the rental market will become a lot more competitive and renters will benefit.

Your basic '0-5% down' type buyers from 2007+ are going to be screwed if a major correction occurs alongside a hike in interest rates. They will have no choice but to either rent out to cover carrying costs as much as possible or lose the house in foreclosure.