Rent and ownership are competing markets. Looking at the rent to price ratio is a quick way of judging whether homes are overvalued or not. Calculated Risk ran the numbers off the latest Case-Shiller national home price data.
It looks like prices still have a ways to fall, although perhaps not much more. The wild card is that rental prices are alos coming down in a lot of markets, which will put additional downward pressure on home prices.
As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.
Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.
Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.
Cheers to trustworthy journalism!
Give just $7/month to get your own KaiPA glass.