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Rising Home Prices Are Mostly from Rising Rents
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Kevin Erdmann
 



Home prices have been rising, unusually, since the mid-1990s. This increase could be attributed to any number of factors, either temporary or permanent, sustainable or imminently reversible. Those factors include low interest rates, speculation, federal subsidies, and monetary stimulus. In fact, however, rising rents have been the primary factor driving up home prices. This is especially true, in 2021, for the ZIP codes where prices are rising the most.


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