Real estate prices strongly correlate with apartment rental prices
the verdict
SUPPORTED
the evidence backs this
confidence 82/100
Real estate purchase prices and apartment rental prices exhibit a strong, long-term cointegrated relationship as measured by housing market indicators like the price-to-rent ratio.
Evidence for · 2
Lead-Lag Relationship between the Price-to-Rent Ratio and the Macroeconomy: An Empirical Study of the Residential Market of Hong Kong
2022 · cited by 10
This study utilizes the price-to-rent ratio to assess housing market conditions, demonstrating a recognized empirical link between property and rental pricing dynamics.
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More for · 1
Rent or buy, what are the odds? Analysing the price-to-rent ratio for housing types within the Northern Ireland housing market
2021 · cited by 9
This paper finds that housing and rental prices are cointegrated, indicating that they move in tandem in the long run.