Rent / Price Ratio Data

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Rent/Price Ratio Data Since 1960, the rent/price ratio has had its ups and downs, much like a rollercoaster. There i s no point where the ratio remains stable , as it is constantly in flux from one year to the next . At times the ratio may only slightly raise or lower over the ye ars, but it does not stay the same during two consecutive years . The housing market and rental market are clearly unstable as they fluctuate constantly. In 1972, the ratio was at its highest at just over 6% at 6.08 ("Land and Property Values in the U.S. | Rent - Price Ratio", 2016 ) . Over the next ten years, the ratio con tinued to decline and did not increase again until 1984. However, the increase came nowhere near the 6% height…show more content…
The price of goods, services, and construction costs continued to climb in the early 1970 's. Taxes also increased, adding an additional blow to consumers. As a re sult, unemployment levels rose. To counter the effect s of inflation and unemployment, President Nixon ordered a freeze on wages and prices for 90 days, hoping to end the cycle of inflation and unemployment ("Economic Crisis - 1971 Year in Review - Audio - UPI.com", 1971) . Though many had hopes for the plan 's success, the economy saw new lows in 1971. Finally, in 1972, the country saw high growth and stable prices. This resulted in only a 5% fall in unemployment ("Situation in the Americas", 2016) . The control on prices and wages was extended by the presiden t and continued to benefit the economy. The economy continued to see growth throughout the rest of 1972. In the first quarter of 1972 annual rent was $ 1373.83 and the average house price was $ 22,722.05, giving the quarter a ratio of 6.05 ("Land and Property Values in the U.S. | Rent - Price Rat io", 2016 ) . The second quar ter 's rent was at $ 1,398.49 and house prices slightly rose to $ 23,240.27 giving the quarter a ratio of 6.02 ("Land and Property Values in the U.S. | Rent - Price Ratio", 2016 ) . The third quarter rent rose to $ 1417.85 and house prices were on average at $ 23,810.21 giving the quarter a ratio of 5.95
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