4 ms·
Rents are based on willingness to pay per month. Prices (values) are based on that market willingness to pay divided by the cost of capital. If the cost of cap
by wtvanhest 8y ago
Rents are based on willingness to pay per month.
Prices (values) are based on that market willingness to pay divided by the cost of capital. If the cost of capital goes up, all else equal, values will fall while rents are flat.