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Historically, it is more about construction costs and comparable rent prices. http://www.econ.yale.edu/~shiller/data/Fig3-1.xls http://www.econ.yale.edu/~shill
by nzealand 8y ago
Historically, it is more about construction costs and comparable rent prices.
http://www.econ.yale.edu/~shiller/data/Fig3-1.xls http://www.econ.yale.edu/~shiller/data/Fig3-1.xls
- pjmorris 8y agoCan you describe how you reached your conclusion from the data in the spreadsheet? I don't see any of the three series correlating particularly strongly with house prices. My own pet theory is that adding the Fed's QE purchases to the graph would show stronger correlation than the series that are present.
- nzealand 8y agoPopulation and construction costs are a loose correlation with housing prices, but I dont see any correlation with interest rates. http://lenkiefer.com/2017/12/20/state-population-growth-and-house-prices/ http://lenkiefer.com/2017/12/20/state-population-growth-and-... Here is the graph showing QE vs housing prices. https://fred.stlouisfed.org/graph/?g=mbAe https://fred.stlouisfed.org/graph/?g=mbAe
- pjmorris 8y agoThanks... I look at the QE vs. housing prices graph and see plausible correlation. My bias, supported by the graph: "With house prices dropping, the Fed steps in to bail mortgage lenders out, keeping prices at their elevated levels"