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'Evangelist' Renter: Time to Buy

NYT analyst says buying begins to make sense again

By Rob Quinn, Newser Staff

Posted May 28, 2008 8:32 AM CDT

(Newser) – As property prices head back down, a self-proclaimed "evangelist" of renting is trading in the lease for a mortgage. David Leonhardt of the New York Times has been advising people for years not to buy a home and get their money tied up in a housing bubble, but he now believes buying is starting to make sense again.

Leonhardt divides the sale price of houses with the annual rent of similar houses for rent. The average "rent ratio" nationwide was 10 to 14 for most of the '70s, '80s, and '90s, but jumped to 19 by the height of the housing boom in 2006, and soared over 30 in some places. Leonhardt thinks the market could get even better, but emphasizes that would-be buyers should look for home, sweet home first, and an investment second.

Housing prices are on the slide, making buying start to look more attractive for people put off buying by the housing bubble of recent years. (Getty Images)

The 'rent ratio' is arrived at by dividing the price of a house for sale with the annual rent for a similar property. ((c) busbeytheelder)

A house for sale is seen next to a sign advertising its new sale price Tuesday, May 27, 2008, in Tacoma, Wash. U.S. (AP Photo/Ted S. Warren)

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'Evangelist' Renter: Time to Buy

NYT analyst says buying begins to make sense again

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Rise in Renters Wiping Out Gains in Homeownership

Effects of subprime crisis evident as percentage of owners drops

Millions Considering Walking Away From Mortgages

10% of mortgages expected to be underwater by June

Finally, Sun Through the Economic Clouds

Thanks to improving housing market, private debt: Paul Krugman

Great Time to Buy? This Renter Says No Thanks

Need for mobility trumps low prices: Justin Martin

Housing Prices Hit New Recession Low

And there's no bottom in sight

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'Evangelist' Renter: Time to Buy

NYT analyst says buying begins to make sense again

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OTHER STORIES ON OUR RADAR

housing market • property • rent • homeownership • housing bubble • property values

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Rise in Renters Wiping Out Gains in Homeownership

Effects of subprime crisis evident as percentage of owners drops

Millions Considering Walking Away From Mortgages

10% of mortgages expected to be underwater by June

Finally, Sun Through the Economic Clouds

Thanks to improving housing market, private debt: Paul Krugman

Great Time to Buy? This Renter Says No Thanks

Need for mobility trumps low prices: Justin Martin

Housing Prices Hit New Recession Low

And there's no bottom in sight

About Us

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Newser By Users

Community

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What is Newser?