2min chapter

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Housing Bubble Week: Can We Predict Housing Bubbles? - Dean Baker

The Joe Walker Podcast

CHAPTER

The Cost of Owning vs. Renting a Home

Cost of owning is basically looking at what you should expect in terms of annual costs. It sounds quite a bit like another formulation for a price to rent ratio, it's basically the same story. Interest rates, of course, is a big factor that does change and had not changed hugely at that point. interest rates fell later in response to the collapse of the bubble,. But it is basically lookingat price to rent, you know, so I don't want to make it overly complex if you would get priced at that, that's the bulk of the story.

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