Inflation Alert! St. Louis Fed Lead Economist in Supervision Willaim Emmons reported price-to-rent ratio is at its highest level since at least 1975. As of March, the nationwide house price index was about 30% higher than the estimate of fair value.
Source 5/24/21
Price-to-rent has surpassed that of the last housing bubble peak.
Some interesting excerpts from the report:
The nationwide house price-to-rent ratio, a widely used measure of housing valuation that is analogous to the price-to-dividend ratio for the stock market, is at its highest level since at