Price to Rent Ratio for Multiple Regions

March 7, 2022

Overview # A common metric that real estate investors rely on to determine where to invest is the price to rent ratio. This is a fairly simple formula: \(Price to Rent Ratio = \frac{Median Home Price}{Median Annual Rent}\). A high price to rent ratio suggests that the demand for rentals is high within a given market. The general idea is that if real estate prices within a given area are extremely high relative to rent, renting will be far more financially accessible than buying, which would drive up the demand for rentals. ...