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Three Cents Worth: The Rent Versus Buy X-Games

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[It took real estate appraiser, Curbed graph guru and podcaster extraordinaire Jonathan Miller over a month to recover from his March Madness megachart. Today he's back in the saddle!]

Click to expand!

This week I paired sales and rental data, adjusted for inflation, over the past (nearly) 20 years. I am constantly told that the rental market leads the sales market, but I'm not sure about much other than the two acting as opposites.

There was a big crossover post-9/11, likely caused by the Fed dropping rates to historic low levels, which fueled the housing boom and weakened the rental market.

Rents rose fairly rapidly over the first decade, while sales prices were sliding for a large portion of the 1990s until about '98 (think dot-com bubble start). Rents remained fairly flat for a few years with a general downward trend since '06. Sales crossed over circa 2002 when rents fell sharply. It's a big "X."
· Manhattan Median Monthly Rent v. Median Sales Price [Miller Samuel]
· Three Cents Worth archive [Curbed]