Chart of the Day: Rental v. Home Prices in US Cities

Here’s a chart from via The Big Picture about increasing rental costs vs. home costs in US cities. Check out MSP on the list:

rental-fever

According to Ritholtz, “Rental costs are increasing faster than home values for the first time since 2012.”

But here in the Twin Cities, things are different. If we have a tight rental market, as I hear repeatedly, why is MSP one of the only places where rental costs have gone down? Is this a one-year anomaly?

 


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2 Responses to Chart of the Day: Rental v. Home Prices in US Cities

  1. Nicole June 2, 2015 at 1:10 pm #

    It really must be an anomaly. We are turning two of our three rental units this summer, and both have been rented for more than two years, and we were able to increase rents reasonably (we’ve never adjusted rent for existing tenants). Anecdotal, obviously, but even a quick CL search looks to me like rents have generally gone up since the last time I had to price the market.

  2. Ben June 2, 2015 at 1:21 pm #

    How is the YoY rent number determined? Are we sort of a black hole for data? Could it be related to the hot seller’s market we are in where more units are coming out of rental and being sold to owner / occupiers? A lot of the town homes in the Twin Cities are finally getting at or above water since the recession.
    It is interesting.
    Then again, if Zillow is using their estimator tool and not hard data, that may explain it. Their numbers seem to be off by quite a bit from reality depending on the property.