Graphx do you have a time series chart on rental growth rate versus interest rates and interest rate versus median home prices?

etheran_IHB

etheran_IHB

New member
What I am struggling with is inflation. Inflation should help real assets but homes are finance based real assets that should behave inversely with interest rates. I am wondering if rental rate growth rates escalate with inflation or not really. Thanks.
 
Rents track incomes. If wage inflation is the cause of the measured price inflation, then both rents and real estate values will go up (actually real estate will stagnate until fundamentals catch up first). If the measure price inflation is caused by a decrease in value of the US dollar (a result of excessive printing) or an increase in imported goods for other reasons, then wages and rents will not go up, and we will all experience a decline in our standard of living.
 
If the cost of food and energy go up without a corresponding increase in wages, home prices and rents will decrease.
 
Thank you irvinerenter. How sustainable are food and energy prices when wage inflation is not growing? For example, we just saw the huge spike in oil prices, metals, and agriculture collapse when the economy turn south. What is the actual cause and effect here? Do we need spending power for commodity prices to remain high?



Yes, there has been a long discussion about how institutional investors inflated commodity prices, but as we saw, that alone does not appear to be sustainable.



Also is the US dollar really going to weaken against other developed country if every country is also printing $? I can are dollar weaken against net exporters like china etc but not against the European majors.



If someone has a chart on rental rate versus inflation that would be great.
 
I will think about working on a chart for you. I've been busy, and plan to be for a awhile, but I have to say I am interested too. I just wish there was a good source for rental rates in OC aside from the Census Bureau. If anyone knows where I can get historical rental data for free from, let me know. Getting the SoCal inflation numbers is easy.
 
Thank you. I am having trouble sourcing the data also. I just thought that you might have had the data. Thanks again.
 
Was at warren Buffett annual shareholder meeting. He brought up some interesting data about housing which made me wonder if anyone here have any of these data. How many new households are formed in Irvine on average every year? Second, what is the current inventory level in homes in Irvine specifically today? Next what is both of these days points for orange county?



If anyone has any data on my previous question on rent and inflation in orange county let me know.
 
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