Posted by Jonathan J. Miller -Friday, November 11, 2011, 3:14 PM
It’s time to share my Three Cents Worth on Curbed NY, at the intersection of neighborhood and real estate in the capitol of the world.
In honor of Curbed’s Renters Week, I thought I’d revisit the topic of multipliers, building on yesterday’s post that compared the Manhattan rental and sales markets. The multiplier is one way to gauge the relationship between what an apartment sells for and what it rents for. Unlike the housing boom in the mid-decade when sales and rents grew disconnected, it still comes down to basics. While home purchases are not always economically driven by what they rent for, theoretically they should be within reach. The disconnect between rental and sales prices during the boom was essentially free credit—there are many who believe that all housing indicators eventually “revert to the mean,”i.e. return to their long term trends…
Three Cents Worth: Rental Market Gets Multiplied and Mean