Improvement in Seattle Home Prices vs. Economic Fundamentals

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 […]

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 […]


Fortune: Price-to-Rent Correction Forecasting

Over at the Baltimore Housing Bubble blog, site contributor Kevin has an interesting post up about a recent article in Fortune Magazine. This months edition of Fortune Magazine (November 12, 2007) had a great article on housing called How Low Can They Go? by Shawn Tully (no online link available yet, but I’ll modify post […]