Home Price to Rent Ratio Still Below Bubble Territory

It’s been a while since we took a look at how rents are comparing to home prices in the Seattle area. Both home prices and rents have been climbing quite a bit in the Seattle area lately. We would expect this with a booming local economy, but if home price gains been significantly outpacing rent […]

Another Real Estate Bubble? Price to Rent Ratio Shoots Up

With home prices approaching or even exceeding their 2007 peak levels in parts of the Seattle area, there has been renewed talk about whether we’re in another housing bubble or not. This week I’d like to go back to the same data I used in 2005 and 2006 to definitively recognize the bubble at a […]

Undervalued to Overvalued in Less Than a Year

Local home prices gone from undervalued to overvalued in just a year. In January 2013, Seattle-area home prices as measured by the Case-Shiller Home Price Index were four or five percent below where local per capita incomes would suggest they should have been and one percent below where rents suggested. By December 2013, massive gains […]

Rapid Rent Increases Not Keeping Pace with Home Prices

There have been a few stories in the Seattle Times recently about the rapid rise of local rents: August 24: Soaring rents force lifestyle changes September 23: Local apartment rents continue climbing So I thought it would be a good time to take a look at how rents are comparing to home prices, since they […]

Top 30 Cities: Price to Rent & Price to Income Ratios (2011)

By request, here’s an update to my table of housing stats for the top 30 largest cities in the country. Actually this time it’s the top 31, since Las Vegas got ousted from #30 by Oklahoma City the last time I did this list (in late 2010). Also of note: Detroit’s ongoing dramatic decline in […]

Price to Rent Ratio at Early 1998 Levels

It’s been about a quarter of a year since we last checked in on the Seattle-area’s price to rent ratio, so I thought I’d share an update of those charts. As of January (the latest Case-Shiller data available), Seattle’s price to rent ratio is down to just 2.5% above the 1990-2001 average, hitting its lowest […]

Big Picture 2011: Price to Rent Ratio

Big Picture Week 2011 continues with an updated look at Seattle’s price to rent ratio. Here’s our chart of single-family home prices divided by annual rent: Another chart with dramatic improvement since last year’s Big Picture Week. When last we checked in on this measure (June 2010 data), the ratio was 20% above its 1990-2001 […]