BobS
Inflation rose throughout the 1970s, climaxing at 13.5% in 1980. House prices also peaked in 1980, along with gold. House prices fell somewhat in the early 80s due to ungodly tight money–mortgages were 16%.
The point is, inflation in house values became part of the reward for being a landlord. Cash flow–rent relative to price–became less of a factor. Thus the rent/price ratio changed permanently by ratcheting up. The same pattern repeated itself after 2000.
