Sunday, March 5, 2017 2 comments ++[ CLICK TO COMMENT ]++

Sunday Spectacle CCXVI

Value of US Residential Real Estate & Rent

Not entirely sure how accurate the figures are but, based on computations by Zillow, Reuters reports that the total value of US residential real estate is around $29.6 trillion. Total rent paid is around $478.5 billion. The rental yield is only like 1.6% -- does that seem right? Anyway, here is the data.

(source: "Data Dive: What $30 trillion will get you," Beth Pinsker, Reuters, January 5, 2017)

2 Response to Sunday Spectacle CCXVI

March 7, 2017 at 1:23 PM

No, that's not correct. ~65% of homes are owner occupied which means there is no rent and of the 65% that are owned, I'd venture they are worth more than average (think mansions, etc. that are rarely rented).

March 7, 2017 at 11:37 PM

Hi Anon,

Thanks for the response. I never thought of the owner occupied homes. If we deflate the total value by say 75%, then the rental yield is around 6.4pct, which is more reasonable.

Thanks for the insight.

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