Housing Price to Rent Ratio

Friday, May 23, 2008 | 09:15 AM

While we await the latest Existing-home sales for April, to be released  at 10:00am, let's have a qwuick look at a related chart.

All those Housing Bottom callers should consider the Housing Price to Rent ratio. It argues very loudly against a bottom anytime soon:

Price_to_rent_ratio

chart courtesy of Janet L. Yellen, President, Federal Reserve Bank of San Francisco

>

See also: No spring bounce for housing, Toll CEO says   

Source:
Speech to the Certified Financial Analysts Institute, Annual Conference
Vancouver, British Columbia
Janet L. Yellen, President and CEO, Federal Reserve Bank San Francisco
May 13, 2008, 10:00 AM Pacific time, 1:00 PM Eastern
http://www.frbsf.org/news/speeches/2008/0513.html

Credit, Housing, Commodities and the Economy
Charts
http://www.frbsf.org/news/speeches/2008/charts.pdf

Friday, May 23, 2008 | 09:15 AM | Permalink | Comments (33) | 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/6a00d8341c52a953ef00e55222b7a98833

Listed below are links to weblogs that reference Housing Price to Rent Ratio:

Comments

I do tend to "put stock in this", but it's worth remembering rental and owned housing aren't perfect substitutes.

Ironically, one of the elements of imperfect substitution is that owned housing has greater security of tenure.

Record foreclosures may have dented that particular advantage recently.

Posted by: Estragon | May 21, 2008 2:39:08 PM

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