Patientrenter made a good point and I agree. My post does seem to imply prices will necessarily reach rental investment levels. But I should view that as the theoretical FLOOR of the market. Thanks for the comment.
Several others here have also pointed out that people in fact DO naturally pay a certain premium for the privelage of owning. It is really the amount of that premium that is argued when discussing what “reasonable” means and how far the bubble should deflate. It seems the ownership premium has been quite high in part because recent speculators never really intended to actually pay down their monster loans.
I would recommend trying to determine what premium you personally place on owning given the downside risk. When (or if) prices reach that level you won’t regret buying.
