tag:blogger.com,1999:blog-35190061.post116242087344906456..comments2023-10-17T03:59:01.588-07:00Comments on Doctor Housing Bubble Blog: Doing The Housing Bubble Math Dance for California.Dr Housing Bubblehttp://www.blogger.com/profile/12407700951720008626noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-35190061.post-1162501387830262932006-11-02T13:03:00.000-08:002006-11-02T13:03:00.000-08:00This is an excellent post, Dr. Housing Bubble!Now,...This is an excellent post, Dr. Housing Bubble!<BR/><BR/>Now, the next thing to do is to make a price drop / rent increase estimate that would be required to bring this $991 dollar difference into the historical norm of $170.<BR/><BR/>To make things simple, though, you should assume no rent increases for the next few years since many flippers/home sellers are putting houses up for rent while most apartments have vacancies. <BR/><BR/>Add in a recession, and you could also have rents dropping at the same time real estate drops in price, as well.<BR/><BR/>As a sidenote, CalculatedRisk has a nice price to rent ratio chart for San Diego:<BR/><BR/><A HREF="http://calculatedrisk.blogspot.com/2005/03/price-rent-ratio-usa-and-san-diego.html" REL="nofollow">[Link]</A><BR/><BR/>With rents unchanged, we are looking at a drop from 1.6 to 0.8 (recession), which would correspond to a 50% drop from peak prices..bubble_watcherhttps://www.blogger.com/profile/09754629981220575364noreply@blogger.com