[quote=Rich Toscano][quote=no_such_reality]I just realized your chart is price versus equally waited rent/income. Rent seems just as crazy as housing, how’s the chart look versus just income?
I agree today is much more rational than 2006, just with the incredibly low interest rates, I’d expect a higher multiple for lower income.[/quote]
It’s about the same. That’s why I started combining them, they were basically saying the same thing…[/quote]
Thanks. A case of my gut and anecdotal observation being completely off. I’d have never guessed that rents over the last eight years have been essentially flat (in the macro measure). http://www.deptofnumbers.com/rent/california/san-diego/
Income is down close to 10% though still.
If I look at Case-Shiller for SD, I see July 2006 at 249. For August 2015, 215 If I use per capita income from the above site I get a ratio 7.37 for peak and 6.62 today. Checking the 2009 low spot, I get a Case Shiller at 144 and income at about equal to today for a ratio of 4.47. The 2012 looks shows CS around 149 with income around lower by about 10% compared to 2009. Giving a ratio of 4.95. The 2013 run up across median has CS ranging from 164 to 195. Income with about a 1% change. Giving the flat bar equiv around 5.45. Scaling the crossover by a 5 factor puts the flat line around 110, the peak around 147 and current around 132. the 2009 low around 99. Massive napkin calcs involved.
