Buy vs. Rent Redux

Wednesday, May 28, 2008 | 07:00 AM

We've looked at the issue of Buy vs Rent quite a few times over the years. You can imagine my thrill at seeing the map (below) showing various city ratios of Purchase to Rent prices from around the country.

It is consistent with our main Housing theme: Prices remain way too high for any sort of a bottom to be near.  Why? During the 1970s, ’80s and ’90s, the average rent ratio nationwide was between 10 - 14.

It broke out of that historical range in 2003, hitting ~19 when the housing market peaked in 2006.

Where is the ratio today? Pick a city:


>

click for larger graphic
>
0528bizleonhardt


>


Source:
As Home Prices Drop Low Enough, a Committed Renter Decides to Buy
DAVID LEONHARDT
NYT, May 28, 2008
http://www.nytimes.com/2008/05/28/business/28leonhardt.html

Wednesday, May 28, 2008 | 07:00 AM | Permalink | Comments (25) | TrackBack (0)
de.li.cious add to de.li.cious | digg digg this! | technorati add to technorati | email email this post

bn-image

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c52a953ef00e5529dcf818834

Listed below are links to weblogs that reference Buy vs. Rent Redux:

Comments

When my wife and I first shopped for a home in 2002 we laughed at that time for what most people were looking for pricewise.

As for the market I'm navigating into already deflated assets; home depot for example. Since lumber and building materials prices have already started deflating this should be a better choice than let's say a home builder.

Posted by: John Borchers | May 28, 2008 7:07:24 AM

The comments to this entry are closed.



Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      

Archives

Complete Archives List

Blogroll

Blogroll

Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:


Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites

FeedBurner


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo

Disclaimer

Disclaimer

Odds & Ends

Site by Moxie Design Studios™

FeedBurner