owning versus renting: Good News For Housing Recovery - Cost Of Owning Versus Renting Back To Historical Norm
- 02/25/09 01:46 AM
One popular housing theory is -- before a bona fide housing recovery can begin -- the cost of owning a home versus renting one must return to historical levels. If that belief is true, a national return to rising home prices may be in store for 2009. Falling home prices and falling mortgage rates have dropped the relative, after-tax cost of owning a home to 125% of the cost of renting a home. This is the exact 18-year historical average and not since 2001 has the gap been this small. As reported by the Wall Street Journal, though, the study has some flaws. For example, the … (3 comments)
One popular housing theory is -- before a bona fide housing recovery can begin -- the cost of owning a home versus renting one must return to historical levels.;)
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