American’s and their Real-Estate market…

Interesting piece in the Economist: American housing – Map of misery. Can’t say I care too much, but it does define the relationships between rents and mortgages in more eloquent economic terms that I have 😉

A better measure of housing fundamentals is the relationship between house prices and rents. This is a sort of price/earnings ratio for the housing market: the price of a house reflects the discounted value of future ownership, either as rental income or as rent saved by an owner who lives in the house.

—Chinese Version—





And in case you were curious about that map…


UPDATED: 2008/05/15 – Added Chinese Translation and Considerations…

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