Monday, 18 May 2009

Housing bubbles

Sometimes I can not believe my eyes. Here we have a chart of housing bubbles around the world – with Ireland as a clear winner – based on the price-rent ratio: the price of homes divided by rental income earned. If the ratio goes higher housing prices are leading rental income or rental equivalent costs of a home. And vice-versa.
Ireland was leading the troops. Amazing though that this ratio is going up again. An aberration? Or are rents going down faster than housing prices as foreigners are leaving the Emerald Isle in droves?


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