Rent vs. Buy
Price to Rent Ratio
We can compare the price to own a house versus the price to rent a house to get an idea if real estate prices are inflated. In 2008, this ratio would have shown how inflated housing values were relative to rent. It is important to remember that this ratio does not say anything about affordability of either renting or buying. New York City could have a similar ratio to a small midwestern town. This ratio is simply comparing the costs of owning a house versus the cost of renting a house. This is a rough way to determine if its cheaper to rent or own property.
We are going to be looking at Trulia’s rent vs. buy index today.
Works Cited:
https://www.trulia.com/newsroom/press-releasesitem106111/#
https://www.investopedia.com/terms/p/price-to-rent-ratio.asp?hid=71fc7dc39a807ffd6a0e854f2e044993bcb9cdb1&did=9776913-20230725&utm_campaign=term-of-the-day_newsletter&utm_source=investopedia&utm_medium=email&utm_content=072523
Tags:
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