tag:blogger.com,1999:blog-5238630949857046363.post1196713133512352278..comments2023-07-28T02:09:56.689-07:00Comments on Housing Beveridge: The Beveridge Curve in the Housing Market: The Rental Market is more out of Equilibrium than the Owner MarketAnonymoushttp://www.blogger.com/profile/16393351606929536612noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5238630949857046363.post-74412874502415648592009-04-05T14:32:00.000-07:002009-04-05T14:32:00.000-07:00lineup32That's very interesting. There is a large ...lineup32<BR/><BR/>That's very interesting. There is a large stock of vacant homes that are not classified as for sale or for rent. This stock has not traditionally moved much over the business cycle. I'm not sure what the stock is, I conjecture that it is typically homes that are eventually going to be demolished. However, currently these unaccounted vacant housing units have surged. One potential reason could be what you are observing. Adding them to my results would make the situation even more bleak. <BR/><BR/>My guess is that a lot of speculators moved into these markets, treating these vacation rentals as a form of a long-term but liquid bond, such as 10 yr T-Bills. Buyers figured that they got some cash flow like a coupon and that the market was thick enough that they could sell whenever they felt like it. It turns out that these features of vacation rentals are highly cyclical. Furthermore, in places like Las Vegas it was very easy for developers to build more of these T-Bill like vacation rentals.Anonymoushttps://www.blogger.com/profile/16393351606929536612noreply@blogger.comtag:blogger.com,1999:blog-5238630949857046363.post-55458680950511681792009-03-23T11:43:00.000-07:002009-03-23T11:43:00.000-07:00Thanks, very interesting. pick you up from CR com...Thanks, very interesting. pick you up from CR comments. The other area that gets no attention is vacation home rentals. I live in the wine country and see a large number of condo building and homes marketed at the tourist business seems with the economy contracting these prior positive cash flow properties might be added to inventory sooner or later.lineup32https://www.blogger.com/profile/01645284557123359301noreply@blogger.com