patrick.net

Also, trying to plot price, rent or price/rent versus zip code isn't useful at all. Zip codes are nominal data, while price and rent are continuous. They can be analysed, and I tossed them into JMP, which treats nominal-X axis + continuous-Y axis data as a One-Way analysis. Nothing useful popped out of that, which is sort of to be expected. It "looks" like there is a bunch of expensive real estate on the west coast, but no statistically significant fits could be applied to the data set to back that up.

I took statistics in German in Munich and didn't really absorb much.

bmwman91 says

So, Patrick:
a) Can we get the same data, but with the medians of both?
b) Would it be possible to have an additional column with the 2-letter state code corresponding to the zip code?
c) Do you have some monstrous database with data for every rent listing and recorded sale that you pull this from?

I don't know an easy way to get medians from my database.

I could pretty easily put the 2-letter state code because I can just join with my zip code table.

Yes, I have a monstrous database with data for every rent and asking price from Craigslist for about a year.

SFace says

Then there is still the issue of median rent and median sale is not the same thing.

This is true. Really, it seems like the only proper data set to work with would be one comprised of raw sales prices and rent values. Sampling methodology is a huge factor, and unless EVERY single sale & rental are taken, all sorts of sampling-related issues could mask trends and cause false ones to appear.

I have the x64 version of JMP & 16GB of RAM...I probably COULD work on the entire set of raw data. My gut feeling is that there is going to be some sort of correlation between price and rent without the masking effects of averaging or median filtering. Oh yeah, confirmation bias...about that, lol.

I could pretty easily put the 2-letter state code because I can just join with my zip code table.

Yes, I have a monstrous database with data for every rent and asking price from Craigslist for about a year.

Shoot me an email if you want to see what we can glean from the data. I know that this is sort of Patrick-proprietary stuff since you make a living off the site, so maybe we could make something interesting to share with readers without giving everyone all of your data.

JMP can access databases and stuff, so we wouldn't necessarily need to email monstrous text files.

Another complicating factor is that I don't actually have sales prices, just asking prices. Wish I did.

Asking rents are less of a problem, because the landlord usually gets exactly what he's asking.

bmwman91 says

Shoot me an email if you want to see what we can glean from the data. I know that this is sort of Patrick-proprietary stuff since you make a living off the site, so maybe we could make something interesting to share with readers without giving everyone all of your data.

OK, I'll mail you.

In my area I would LOVE to have the number of homes, apparts, commer, and land held by the same persons and groups. And how many of the individuals that hold rentals are also members of groups that hold rentals ..... and their financial history (forclosure, BR, ShortSales, ect) .... just a dream, I know.

Personally I think that this sort of information would be very useful. The other graph that I think would be great is rent vs the tenant is likely/not likely to destroy your investment property/not pay the rent graph.

Or

Price vs rental rate as it's no point buying a investment if you can't rent it out.