An analysis published on Black
Knight’s blog indicates that rents and home prices don’t always rise or fall in
tandem. The company says comparing trends between the two can sometimes be an
apple and oranges situation; they are similar in some respect but vastly
different in others.
In Orange County, California for
example, median sale prices for single-family home prices and monthly rent for
them in Orange County California, look, at first glance, to be on the same
trajectory, which is a fair long-term conclusion. However, a closer examination
of the graph below shows larger divergences between them in short-term bursts.