by Bill McBride on 3/28/2005 03:19:00 AM
Monday, March 28, 2005
I posted a Price-Rent ratio for the US on Angry Bear:"Housing: Speculation and the Price-Rent Ratio". The following is the same calculation for San Diego (one of the hottest RE markets).
Click on graph for larger image.
The price component is from the OFHEO home price index for San Diego-Carlsbad-San Marcos and the rent series is from the BLS San Diego owner’s equivalent rent index.
Obviously San Diego has seen more recent appreciation. San Diego also experiences more volatility, but that is expected since the US is an average of many areas.