Price-to-Rent Ratio Update

Back in October 2004, Fed economist John Krainer and researcher Chishen Wei wrote a Fed letter: House Prices and Fundamental Value.

Kainer and Wei presented a price-to-rent ratio using the OFHEO house price index and the Owners’ Equivalent Rent (OER) from the BLS.

Here is an update to their graph.

Click on image for larger graph in new window.

This graph shows the price to rent ratio (Dec…
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  3 July, 2008| housingblogs | @ 10:35

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