CWM, my description wasn't clear. I hope that this helps.
Prices have sharply risen over '00-'06:
[img_assist|nid=1842|title=
San Diego Resale Home Median Price, '88-'06|desc=|link=node|align=left|width=466|height=311]
The rent index and imputed rents have risen over '00-'06, but not nearly as much: [img_assist|nid=1843|title=
San Diego Rent Index and Imputed Annualized Rent, '88-'06|desc=|link=node|align=left|width=466|height=311]
When you divide the prices in the first graph by the imputed annualized rent in the second graph, you get the 'price-to-annualized rent' graph. Thus, due to the rapid increase in prices over '00-'06, when compared to the slower increase in rents over the same period, the price-to-annualized rent ratio has really taken off.
