A friend just forwarded me the link for a recent article published at the University of Wisconsin-Madison with the title "The Rent-Price Ratio for the Aggregate Stock of Owner-Occupied Housing".
The main conclusion of the study is that rents for the 35 years from 1960 to 1995 were on average 5% to 5,5% of house prices. However in 1996 house prices started raising much faster than rents.
They predict that for the rent/price ratio to return to the historical average home prices would have to fall 15% in the next five years assuming rents would increase 4% per year during this period. For the balance to be reached faster home prices would have to drop more.
Interesting read and more on fact based than the usual articles. Food for thought. :coffee:
Text @ http://morris.marginalq.com/DLM_fullpaper.pdf
The main conclusion of the study is that rents for the 35 years from 1960 to 1995 were on average 5% to 5,5% of house prices. However in 1996 house prices started raising much faster than rents.
They predict that for the rent/price ratio to return to the historical average home prices would have to fall 15% in the next five years assuming rents would increase 4% per year during this period. For the balance to be reached faster home prices would have to drop more.
Interesting read and more on fact based than the usual articles. Food for thought. :coffee:
Text @ http://morris.marginalq.com/DLM_fullpaper.pdf
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Access Restricted: Unlock 1,000,000+ Posts
Stop Peeking Through the Keyhole.
Open the Door.
You hit a wall because the best advice isn't free—it's earned. Since 2007, MJ DeMarco has been active here daily (99.9% active rate), building a war room for entrepreneurs who refuse to settle for mediocrity.
- Active Daily: Life-changing content posted dozens of times every day. No dead threads.
- MJ's Inner Circle: Direct access to the author of The Millionaire Fastlane.
- Vetted Network: Connect with founders scaling to 7 and 8 figures.
- Proven Roadmaps: Strategy over motivation. Execution over "hustle porn."
"SCALED TO 6-FIGURE MONTHS"
"Tips and advice here saved me from huge mistakes, others allowed me to scale my business to 6-figure months."— User MitchC
"INSANE QUALITY OF PEOPLE"
"The number of high quality people I've met from this forum has been insane. All of it predicated on building real value."— User Richard Peck
"You are the average of the five people you surround yourself with."
Are you surrounding yourself with success?
