Rents Didn't Rise in the Housing Bubble

February 05, 2016

In a piece on the difficulty that many people are having in paying their rent, Morning Edition told listeners that rents have risen back to their levels of the housing bubble years. Actually rents didn’t rise in the housing bubble, rather they pretty much tracked the overall rate of inflation. The sharp divergence between house sale prices and rents was one of the reasons that people who pay attention to data were able to recognize the bubble.

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