Journal Article

House prices and fundamental value

Abstract: This Economic Letter describes one of the measures commonly used to gauge the fundamental value of housing?the price-rent ratio. We describe the kinds of forces that cause the ratio to move over time and document which forces appear to be most important. We document the way that the housing market typically adjusts to changes in economic fundamentals.

Keywords: Housing - Prices;

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Bibliographic Information

Provider: Federal Reserve Bank of San Francisco

Part of Series: FRBSF Economic Letter

Publication Date: 2004

Order Number: 27