We fell short of our Fall Fundraiser goal of 2,500 donations. Help us catch up ⏩ Give Now
My Two Cents

Rent-to-price ratio

Chris Farrell Feb 25, 2009

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.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.