by Calculated Risk on 2/23/2022 10:53:00 AM
Today, in the Calculated Risk Real Estate Newsletter: Real House Prices, Price-to-Rent Ratio and Price-to-Median Income in December
Note that OER is lagging behind other measures of recent rent increases.
Here is a similar graph using the Case-Shiller National and Composite 20 House Price Indexes. This graph shows the price to rent ratio (January 2000 = 1.0). The price-to-rent ratio had been moving more sideways but picked up significantly recently.On a price-to-rent basis, the Case-Shiller National index is at a record high, and the Composite 20 index is back to June 2005 levels.
By all of the above measures, house prices appear elevated.