Rents not rising with housing prices
The Herald-Tribune reports on the price-to-rent ratios and signs that the area’s low rents and high housing costs may represent a bubble. Gulf Returns previously commented on price-to-rent ratios in May.
According to Celia Chen, an Economy.com economist, It’s not surprising that Southwest Florida’s markets have higher ratios than average because of a growing retiree population, but the fact that the ratios have “increased so greatly in the past few years indicates that house prices are becoming detached from their underlying value,”
Rent or buy? A reality check [Herald-Tribune]