Key Indicators of a Housing Bubble: Price-to-Rent Ratio: This compares the cost of buying a home to renting one. A high ratio suggests that homes are overpriced relative to rental values. Price-to-Income Ratio: This measures home prices against average incomes. When homes become too expensive compared to what people earn, it indicates potential overvaluation. Exuberance Indicators: These assess if home prices are growing at an unsustainable rate compared to economic fundamentals. For instance, the Dallas Federal Reserve uses such indicators to monitor U.S. housing markets

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