Why are the Home Prices to Rental Prices Ratio so off?
These are some ballpark numbers in South Bay, you can find lower or higher depending on the location/quality.
| Home Price | Rent Price | Ratio | |
|---|---|---|---|
| 1bdrm condo | $700k | $2800 | 250:1 |
| 2bdrm condo | $850k | $3300 | 257:1 |
| 2-3bdrm townhome | $1.2m | $3500 | 343:1 |
| 3bdrm home 95129 | $2.5m | $5000 | 500:1 |
I need to also account for condo's HOAs tend to be way higher than a townhome or SFH.
Is it simply just... it's better to rent if the price of the home is over $1m in today's market?