Comments on: “The disparity between the the cost of owning and the cost of renting is worse than it has ever been.” http://vreaa.wordpress.com/2008/04/12/the-disparity-between-the-the-cost-of-owning-and-the-cost-of-renting-is-worse-than-it-has-ever-been/ Stories Can Be Telling Mon, 14 Dec 2009 21:57:25 +0000 http://wordpress.com/ hourly 1 By: vreaa http://vreaa.wordpress.com/2008/04/12/the-disparity-between-the-the-cost-of-owning-and-the-cost-of-renting-is-worse-than-it-has-ever-been/#comment-135 vreaa Thu, 17 Apr 2008 01:37:11 +0000 http://vreaa.wordpress.com/?p=63#comment-135 paulmct: The 20% figure takes into account the fact that some owners bought their houses at lower than current market values. paulmct: The 20% figure takes into account the fact that some owners bought their houses at lower than current market values.

]]> By: paulmct http://vreaa.wordpress.com/2008/04/12/the-disparity-between-the-the-cost-of-owning-and-the-cost-of-renting-is-worse-than-it-has-ever-been/#comment-130 paulmct Mon, 14 Apr 2008 01:30:04 +0000 http://vreaa.wordpress.com/?p=63#comment-130 Homeowners spend 20% of their income on their homes? No way. If a $2000/month mortgage (for an entry level condo?) is 20%, those people are earning $10k/month, or $120K/year. I seriously doubt that. Homeowners spend 20% of their income on their homes? No way. If a $2000/month mortgage (for an entry level condo?) is 20%, those people are earning $10k/month, or $120K/year. I seriously doubt that.

]]> By: vreaa http://vreaa.wordpress.com/2008/04/12/the-disparity-between-the-the-cost-of-owning-and-the-cost-of-renting-is-worse-than-it-has-ever-been/#comment-129 vreaa Mon, 14 Apr 2008 01:26:48 +0000 http://vreaa.wordpress.com/?p=63#comment-129 Thanks for the additional information, Markoz. I noted the debate, and also note that it doesn't in anyway detract from the central point of your personal anecdote - that owning is currently disproportionally more expensive than renting and that you have chosen to buck the trend and rent. Thanks for the additional information, Markoz.
I noted the debate, and also note that it doesn’t in anyway detract from the central point of your personal anecdote – that owning is currently disproportionally more expensive than renting and that you have chosen to buck the trend and rent.

]]> By: Markoz http://vreaa.wordpress.com/2008/04/12/the-disparity-between-the-the-cost-of-owning-and-the-cost-of-renting-is-worse-than-it-has-ever-been/#comment-128 Markoz Sun, 13 Apr 2008 15:58:51 +0000 http://vreaa.wordpress.com/?p=63#comment-128 I have been flogged on the other blog for missing the point that the average owner probably has a lower STIR because the average owner has been an owner for many years. My comment referenced a StatsCan analytical paper that another poster had directed me to. I'm sure that is part of the issue but here is a quote from page 18 of that paper: Despite significant declines in their average STIRs in the late 1990s, renter households in 2001 spent a considerably higher proportion of their before-tax incomes on shelter than owners. In most CMAs, differences in the average STIRs of owners and renters amounted to 10 percentage points or more. These differences largely reflected underlying differences in income. In many CMAs, the average household incomes of owners were more than double those of renters (see Appendix Table A1.18). Although owners also paid more for their housing than renters, differences in the shelter costs of owners and renters amounted in most CMAs to between 20 and 40 percent, far less than differences in income. I have been flogged on the other blog for missing the point that the average owner probably has a lower STIR because the average owner has been an owner for many years. My comment referenced a StatsCan analytical paper that another poster had directed me to. I’m sure that is part of the issue but here is a quote from page 18 of that paper:
Despite significant declines in their average STIRs in the late 1990s, renter households in 2001 spent a
considerably higher proportion of their before-tax incomes on shelter than owners. In most CMAs, differences
in the average STIRs of owners and renters amounted to 10 percentage points or more. These
differences largely reflected underlying differences in income. In many CMAs, the average household
incomes of owners were more than double those of renters (see Appendix Table A1.18). Although owners
also paid more for their housing than renters, differences in the shelter costs of owners and renters amounted
in most CMAs to between 20 and 40 percent, far less than differences in income.

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