Here’s an update to the area-wide price-to-income and price-to-rent ratio charts we first posted back in April. These charts are based on per capita income, “Median Contract Rent” (from 2005 adjusted using the “rent of primary residence” component of the CPI), and Case-Shiller home prices indexed to the county-wide median. They are not intended to…
Tag: income
What does Personal Income tell us about near future home prices?
There have been a couple of discussions in the comments section in the last week or so about the relationship between home prices and incomes. I thought it would be a good time to queue up a post about the long-term price-to-income trends, where we are now, and what the possible outcomes could be. The…
Seattle Homes Still 10-20% Overpriced Compared to Rents and Incomes
Inspired by this post from Rich Toscano down in San Diego showing that home prices there have reached historically reasonable levels when compared to rents and incomes, I thought I would put together some similar charts for Seattle to see how close we are to reasonable home prices. Here’s the chart for home prices to…
Rents to Rise, or Home Prices to Fall?
One of the arguments often discussed with respect to the housing bubble is the fact that the ratio of prices to rents has been fairly consistent on a historical basis, but that this ratio has been blown out in the past few years as home prices have shot up. Indeed, this can be seen in…
Welcome to Seattle Bubble
Since I was on KING 5 News last night and KOMO 1000 radio this morning*, I thought it would be good to write up a slightly more detailed post aimed at answering the question: “What is Seattle Bubble about?” So, here’s a summary of the important points. The Bottom Line: Now is not a good…