Bloomberg published results from a new study by economist Niraj Shah as he aimed to build a housing bubble dashboard.
t tracks four key metrics:
- House Price-Rent Ratio
The ratio of house prices to the annualized cost of rent - House Price-Income Ratio
The ratio of house prices to household income - Real House Prices
Housing prices adjusted for inflation - Credit to Households (% of GDP)
Amount of debt held by households, compared to total economic output
Ranking high on just one of these metrics is a warning sign for a country’s housing market, while ranking high on multiple measures signals even greater fragility.
Source: https://www.visualcapitalist.com/mapped-the-countries-with-the-highest-housing-bubble-risks/
