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They use price to rent ratio for determining if there is a bubble. This seems like a flawed metric - both home prices and rents are increasing. What is not incr
by innagadadavida 5y ago
They use price to rent ratio for determining if there is a bubble. This seems like a flawed metric - both home prices and rents are increasing. What is not increasing is the income. So shouldn’t they be tracking median income to median home prices and rents in local areas? I feel this will show a different picture and we might already be in bubble territory - especially if the interest rates co tongue to spike.
- imapeopleperson 5y agoIncome most certainly is increasing
- spaetzleesser 5y agoThe ratio of price/income has been growing way faster over the last decades.
- stonogo 5y agoIn absolute terms, yes. It's not, however, increasing fast enough to keep up with rent, food, fuel, power, or inflation.