Media and politicians love to talk about rising rent to gain political credits. The reality is gross rental yield is less than mortgage rate… landlords are subsidizing tenants.
Before Fed rate hikes, gross rental yield is 8-9%, mortgage is 2-3%.
Today, gross rental yield is 6-7%, mortgage is 7-8%.
What about the landlords who locked in 2-3%?
Actually is three tiered.
Starter = Less than 0.75 median price. Red-hot
Move-up/ Investment = 0.75 to 1.25 median price
Luxury = More than 25% above median price Ice-cold
Have been like that for more than a year.
This is only for new buyers which are a tiny percent of total home owners. It’s annoying when they click bait or just don’t understand the terms or math.
At least they are honest in the title and admit prices are up.