Monthly rental price of a comparable home and the pricing of a two-bedroom home

Kristoffer Michael Warren
Additional contact information
Kristoffer Michael Warren: Seattle University, WA 98026, USA

Journal of Economic and Financial Studies (JEFS), 2017, vol. 5, issue 4, 56-62

Abstract: Using single and multivariate OLS regressions, this study examines how the listing price of a two bedroom home is affected by the monthly rental price of a comparable home in the same city. We do this in order to provide some direction to young families looking to purchase their first home. Our data encompasses each state’s most populated city within the United States. This study reveals that as the monthly rental price of a comparable home (especially condos) increases, and/or as the price-to-rent ratio increases, so does the listing price of a two bedroom home. Therefore, a frugal home buyer should keep an eye on both comparable rental prices, and on the price-to-rent ratio within their city of interest. When rental prices drop, or when the price-to-rent ratio decreases, that is when a homebuyer should begin to consider the purchase of a two-bedroom home. Classification JEL: R150; R200

Keywords: Econometric modeling; Home ownership; Real estate pricing (search for similar items in EconPapers)
Date: 2017
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.journalofeconomics.org/index.php/site/article/view/257/330 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lrc:lareco:v:5:y:2017:i:4:p:56-62

Access Statistics for this article

More articles in Journal of Economic and Financial Studies (JEFS) from LAR Center Press
Bibliographic data for series maintained by S Marjan ( this e-mail address is bad, please contact ).