Tuesday, January 29, 2008

Rents Ultimately Drive Property Values


I love this chart. estimates that around 2012 in Irvine, CA (which is probably not as representative as the rest of the country) rents will catch up to the market value of the houses out there. Hat tip to another charting blogger.

3 comments:

mrclean368 said...

Is it correct to use median values to compare to rents. Just seems like few rental properties are going to be valued above the median but many are going to be below the median.

Unfortunately I don't know what metric you could use that would be better than median since the mean should be higher.

I enjoy your blog. Its very informative.

Anonymous said...

So how does a guy who's so obsessed with the housing boom rationalize being such a cheerleader for the Irish economy? Ireland got rich on one of the worst housing bubbles -- despite a HUGE population influx -- and a whopping 13% of its labor force is in construction.

Jen said...

I can't find an email address for you, but I thought you'd want to see this new Hoover publication about recession:

http://www.hoover.org/research/focusonissues/focus/14776626.html