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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (43490)	10/14/2005 2:16:39 PM
From: Broken_Clock	Respond to of 110194

NAR research shows the average home holding period in the US is about 5 years. Not to mention insurance has skyrocketed in the past two years. Rents have also had a big jump in many large areas. I realize there are still many areas of the country where you can rent a 1bd apt for 325/mo. There's a reason for that. -g-

To: mishedlo who wrote (43490)	10/14/2005 2:22:41 PM
From: CalculatedRisk	Respond to of 110194

Its an interesting discussion as to what should be included in the cost of shelter. Notice I didn't argue that home prices should be included. If you borrowed against your home, has your cost of shelter increased? I would argue yes. That is why I presented the Financial Obligations Ratio for mortgages - it is at an all time record of disposable income. Of course the BLS doesn't include additional debt as part of "shelter".