in a previous post, I covered "Home Prices Peaking Relative To Household Income"
In this post we see Home prices to rent have also peaked at previous highs double peaking. The first peak was caused by lower interest rates. The second peak was caused by low rates plus Massive Deficits with helicopter money.
Note how excessive deficits and lower rates since 2000 have not only dwarfed the 70's peak but it made owning a home extremely expensive with the exception of a financial collapse. However, it has been profitable to own a home during that time period. As long as home prices keep rising it works great until it doesn't. It is the "doesn't" part that should worry us all.
I am very interested to see when this ratio falls to more favorable levels, what the macro economy will look like.
บันทึกช่วยจำ
Home prices to rent ratio continue to retrace as expected.