Quarterly house price to rent ratio in the U.S. 2015-2020
In the second quarter of 2020, the house price to rent ratio in the United States equaled 113.7 percent.
House price to rent ratio
The price to rent ratio is determined by dividing the median home price by the median annual rent. It is used as the basis to determine whether it is cheaper to own or rent a property. It gauges if the housing prices in an area are fairly valued, or overpriced. This index is based on 2015 values, when it equaled 100. Even though the price to rent ratio determines which is better, it does not determine if it is affordable or not.
Ratio in different countries
In the United Kingdom, the house price to rent ratio from the second quarter in 2015 to the fourth quarter in 2018 increased significantly. Not only did it significantly increase in the United Kingdom during that time period, it also did in Germany. However in the Netherlands, it has fluctuated drastically since 1990, but has seen a recent increase.
House price to rent ratio
The price to rent ratio is determined by dividing the median home price by the median annual rent. It is used as the basis to determine whether it is cheaper to own or rent a property. It gauges if the housing prices in an area are fairly valued, or overpriced. This index is based on 2015 values, when it equaled 100. Even though the price to rent ratio determines which is better, it does not determine if it is affordable or not.
Ratio in different countries
In the United Kingdom, the house price to rent ratio from the second quarter in 2015 to the fourth quarter in 2018 increased significantly. Not only did it significantly increase in the United Kingdom during that time period, it also did in Germany. However in the Netherlands, it has fluctuated drastically since 1990, but has seen a recent increase.
