Thursday, April 30, 2015

There is No Price Inflation (Housing Rent Edition)

With the Federal Reserve aiming at what it calls a 2% target inflation rate, the price of rental housing, the biggest monthly expense for most, shows an annualized growth of well above the target. Currently at 3.6%.


1 comment:

  1. The ultra-luxury housing market is scaling new heights as a record number of properties around the world command prices topping $100 million.

    Demand for mega-mansions and penthouses has accelerated as wealthy buyers seek havens for their cash and search for alternative investments such as art and collectible real estate, according to a report Thursday by Christie’s International Real Estate, owned by auction house Christie’s. Five homes sold for more than $100 million last year, with at least 20 more on the market with nine-figure asking prices, the brokerage said.

    “You’re looking at a universe of over 1,800 billionaires who are starting to become members of this club of collectors of the most unique and incredible real estate in the world,” Dan Conn, chief executive officer of Sales of $100 Million Homes Rise to Record Worldwide
    Christie’s International Real Estate, said in a telephone interview. “It’s something they’ll hold onto for a lifetime, the same way they’ll hold onto a Picasso or a Warhol or any number of the great pieces of art we’ve sold over the years.”