Discover and read the best of Twitter Threads about #pricetorentratio

Most recents (1)

Quick thread on Price-to-Rent Ratio?

The price-to-rent ratio can be helpful for gauging whether or not an area is “fairly” priced, or if it’s in bubble territory.

To determine the price-to-rent ratio in a given area, divide the median home price by the median annual rent.
Generally, a price-to-rent ratio higher than 21 means it’s cheaper to rent in that area.

As of 2019, the price-to-rent ratio in San Francisco is over 50, the highest in the US.
For every $1,000 you’d spend in rent, you’d have to pay $601,362 to buy something comparable.
e.g. a place that rents for $4,000/mo. would cost roughly $2.4M to buy.

At that rate, it’s cheaper to rent than to own, as the estimated monthly mortgage payment would be around $10,000.
Read 7 tweets

Related hashtags

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!