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> A financially rational person would consider buying a house if the P/R ratio is 15 or lower. How does one go about calculating that? Or reading someone else'
by jldugger 9y ago
> A financially rational person would consider buying a house if the P/R ratio is 15 or lower.
How does one go about calculating that? Or reading someone else's calculations? For real estate prices I can check out the Case-Shiller, for P/R I got nothing.
- s3nnyy 9y agoI linked to that source in the article: http://affordanything.com/2015/11/24/is-renting-better-than-buying-should-i-rent-or-buy/ http://affordanything.com/2015/11/24/is-renting-better-than-...
- jldugger 9y agoAh, I figured that underline was for emphasis. Sadly your source doesn't cite its own sources. It's pretty rare to see a home both for sale and for rent, so you'd likely be comparing oranges for sale with apples for rent. A lot of the magic of Case-Shiller is in finding valid comparables over time, so I'm hoping someone has put together a similar time regional series for rents themselves. Maybe not -- it's not like there's a huge market for derivatives on rental properties.