3 ms·
Yup, probably the simplest objective metric to calculate is price-to-income ratio as a measure of "overvalued" in a given location.
by kspaans 8y ago
Yup, probably the simplest objective metric to calculate is price-to-income ratio as a measure of "overvalued" in a given location.
- TheTrotters 8y agoNot really. There's no universal law which says that bread has to be X% of local income or that housing has to be Y%.
- kspaans 8y agoYou're right, interpreting whether a given price-to-rent ratio is overvalued or not is subjective, but calculating that ratio is (mostly) objective and can make for an apples-to-apples comparison between different locations.