Rent, Buy and Income

The charts show the ratio of renting to buying and the development of home prices compared to disposable personal income per capita. Both tell a similar story: after the boom and the bust the relation of the housing market to rentals and to income is back in a normal range.  While the recovery is not complete and the nation certainly hasn’t made up for the homes that were not built in the last recession and subsequent years of weak recovery, we are headed in the right direction.  The Rent-Buy chart shows that renting is slightly favored compared to the average going back almost 26 years.  The comparison of incomes and prices is also looking better.  At the peak of the housing boom, prices had surged faster and farther than income , only to plunge down below the income trend line. Now the two series are close together. Click on the charts for a larger image.



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