The house price to rent ratio in the OECD countries has increased year-on-year since 2012, reaching the highest index value in 2022. In 2023, the ratio amounted to 134.7, a decline from 137.8 index points the year before. This ratio was calculated by dividing nominal house prices by rent prices, with 2015 chosen as a base year with an index value of 100. An index value of 130 index points means that house price growth outpaced rental growth by 30 percent since 2015.

Turkey, Russia, Portugal, and Latvia were the countries with the highest house price-to-rent-ratio in the ranking in the second quarter of 2024. In all three countries, the ratio exceeded *** index points, meaning that house price growth had outpaced rents by over ** percent between 2015 and 2024. What does the house-price-to-rent ratio show? The house-price-to-rent-ratio measures the evolution of house prices compared to rents. It is generally calculated by dividing the median house price by the median annual rent. In this statistic, the values have been normalized with 100 equaling the 2015 ratio. Consequentially, a value under 100 means that rental rates have risen more than house prices. When all OECD countries are considered as a whole, the gap between house prices and rents was wider than in the Euro area. Measures of housing affordability The national house-price-to-rent ratio may not fully reflect the cost of housing in a particular country, as it does not capture the price variations that can exist between different regions. It also does not take into consideration the relationship between incomes and housing costs, which is measured by the house-price-to-income and household-rent-to-income ratios. Taking both these factors into account uncovers vast differences in housing affordability between different regions and different professions.

United States US: Price to Rent Ratio: sa data was reported at 134.118 2015=100 in 2024. This records an increase from the previous number of 133.710 2015=100 for 2023. United States US: Price to Rent Ratio: sa data is updated yearly, averaging 99.069 2015=100 from Dec 1970 (Median) to 2024, with 55 observations. The data reached an all-time high of 137.672 2015=100 in 2022 and a record low of 89.669 2015=100 in 1997. United States US: Price to Rent Ratio: sa data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s United States – Table US.OECD.AHPI: House Price Index: Seasonally Adjusted: OECD Member: Annual. Nominal house prices divided by rent price indices

Japan JP: Price to Rent Ratio: sa data was reported at 132.703 2015=100 in 2024. This records an increase from the previous number of 129.382 2015=100 for 2023. Japan JP: Price to Rent Ratio: sa data is updated yearly, averaging 125.671 2015=100 from Dec 1970 (Median) to 2024, with 55 observations. The data reached an all-time high of 185.251 2015=100 in 1991 and a record low of 91.768 2015=100 in 2009. Japan JP: Price to Rent Ratio: sa data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Japan – Table JP.OECD.AHPI: House Price Index: Seasonally Adjusted: OECD Member: Annual. Nominal house prices divided by rent price indices

Context

This dataset is created via OECD datasource which is consisted of 2000 between 2020. https://data.oecd.org/price/housing-prices.htm

Content

The housing prices indicator shows indices of residential property prices over time. Included are rent prices, real and nominal house prices, and ratios of price to rent and price to income; the main elements of housing costs. In most cases, the nominal house price covers the sale of newly-built and existing dwellings, following the recommendations from RPPI (Residential Property Prices Indices) manual. The real house price is given by the ratio of nominal price to the consumers’ expenditure deflator in each country, both seasonally adjusted, from the OECD national accounts database. The price to income ratio is the nominal house price divided by the nominal disposable income per head and can be considered as a measure of affordability. The price to rent ratio is the nominal house price divided by the rent price and can be considered as a measure of the profitability of house ownership. This indicator is an index with base year 2015.

The house price to rent ratio index in the U.S. declined in the second half of 2022 and remained stable until the end of 2024, indicating that house price growth slowed down compared to rental growth. At its peak, in the second quarter of 2022, the index stood at *****. House prices increased dramatically since the coronavirus pandemic. Meanwhile, rents have grown notably, but at a slower rate. What does the house price to rent ratio index measure? The house-price-to-rent-ratio measures the evolution of house prices compared to rents. It is calculated by dividing the median house price by the median annual rent. In this statistic, the values have been normalized with 100 equaling the 2015 ratio. Consequentially, a value under 100 means that rental rates have risen more than house prices. Compared to the OECD countries average, the gap between house prices and rents in the United States was wider. The house price to rent ratio in different countries The house price to rent ratio in the United Kingdom continued to increase in the second half of 2022, but growth softened, as the housing market cooled. On the other hand, the index in Germany fell drastically between the second quarter of 2022 and the second quarter of 2023. A similar trend was observed in France.

Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2024. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 116.2 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.

South Korea Standardised Price-Rent Ratio: sa data was reported at 106.162 Ratio in 2024. This records a decrease from the previous number of 106.438 Ratio for 2023. South Korea Standardised Price-Rent Ratio: sa data is updated yearly, averaging 103.556 Ratio from Dec 1986 (Median) to 2024, with 39 observations. The data reached an all-time high of 120.453 Ratio in 1990 and a record low of 75.266 Ratio in 1998. South Korea Standardised Price-Rent Ratio: sa data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s South Korea – Table KR.OECD.AHPI: House Price Index: Seasonally Adjusted: OECD Member: Annual. Nominal house prices divided by rent price indices. The long-term average is calculated over the whole period available when the indicator begins after 1980 or after 1980 if the indicator is longer. This value is used as a reference value. The ratio is calculated by dividing the indicator source on this long-term average, and indexed to a reference value equal to 100.

The annual house price to rent ratio in the Netherlands has been on an upward trend since 2015. In 2023, the ratio declined for the first time, falling slightly to 154.6 index points. That was higher than the average house price to rent ratio in the OECD countries.The ratio is based on the nominal purchase price of a house divided by the annual rent of a similar place, with 2015 chosen as a base year. A value of 150 indicates that house price prices have outgrown rental prices by 50 percent.

The house price to rent ratio in Germany increased since 2015, peaking at *** index points in the second quarter of 2022, before declining to ***** index points in the second quarter of 2024. The house price to rent ratio is calculated by dividing nominal house prices by rent prices, with 2015 chosen as a base year and the index value set to 100. A value of *** shows that house price growth has outpaced rental growth by ** percent since 2015. Germany was one of the OECD countries with the highest house price to rent ratio.

The house price to rent ratio in Spain has increased quarter-on-quarter since 2015, with the third quarter of 2024 seeing the highest index value. In that quarter, the index reached ***** index points, up from ***** index points in the same period the year before. The house price to rent ratio is calculated by dividing the nominal house prices by rent prices, with 2015 chosen as a base year when the value was set to 100. A value of over 100 shows that house prices have risen at a faster pace than rents. In comparison, the OECD average house price index stood lower, indicating a higher housing affordability than in Spain.

The house price to rent ratio in Greece has increased quarter-on-quarter since 2017, reaching the highest index value on record in 2024. In the second quarter of the year, the index value amounted to *****. The house price to rent ratio is calculated by dividing nominal house prices by rent prices, with 2015 chosen as a base year when the index stood at 100. An index value of *** means that house prices have increased by ** percent more than rents since 2015. Greece's index was higher than the OECD average house price to rent ratio.

France FR: Standardised Price-Rent Ratio: sa data was reported at 133.213 Ratio in 2024. This records a decrease from the previous number of 142.118 Ratio for 2023. France FR: Standardised Price-Rent Ratio: sa data is updated yearly, averaging 85.029 Ratio from Dec 1970 (Median) to 2024, with 55 observations. The data reached an all-time high of 146.056 Ratio in 2022 and a record low of 65.689 Ratio in 1997. France FR: Standardised Price-Rent Ratio: sa data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s France – Table FR.OECD.AHPI: House Price Index: Seasonally Adjusted: OECD Member: Annual. Nominal house prices divided by rent price indices. The long-term average is calculated over the whole period available when the indicator begins after 1980 or after 1980 if the indicator is longer. This value is used as a reference value. The ratio is calculated by dividing the indicator source on this long-term average, and indexed to a reference value equal to 100.

The house price to rent ratio in Austria increased between 2015 and 2022, followed by a decline 2023 onwards. In the second quarter of 2024, the house price to rent ratio amounted to ***** index points, down from ***** index points in the second quarter of 2023. The house price to rent ratio is calculated by dividing nominal house prices by rent prices, with 2015 as a base year with the index value set to 100. An index value of *** means that house price growth outpaced rental growth by ** percent since 2015. As compared to the OECD average, Austria had a lower house price to rent ratio.

Switzerland Price to Rent Ratio: sa data was reported at 125.208 2015=100 in 2024. This records a decrease from the previous number of 125.755 2015=100 for 2023. Switzerland Price to Rent Ratio: sa data is updated yearly, averaging 97.525 2015=100 from Dec 1970 (Median) to 2024, with 55 observations. The data reached an all-time high of 141.820 2015=100 in 1989 and a record low of 74.756 2015=100 in 2002. Switzerland Price to Rent Ratio: sa data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Switzerland – Table CH.OECD.AHPI: House Price Index: Seasonally Adjusted: OECD Member: Annual. Nominal house prices divided by rent price indices

The house price to rent ratio in Norway declined slightly in 2023, after peaking in the second quarter of 2022. In the third quarter of 2024, the house price to rent index stood at ***** index points, down from ***** index points during the same period the year before. The house price to rent ratio is calculated by dividing nominal house prices by rent prices, with 2015 as a base year when the index value was set to 100. A value of *** shows that house price growth has outpaced rental growth by ** percent since 2015. Norway's house price to rent ratio was below that of the OECD average.

The house price to rent ratio in Denmark reached the highest value in 2022, followed by a decline in the following year. The ratio amounted to a value of about ***** in the second quarter of 2024. The house price to rent ratio is calculated by dividing nominal house prices by rent prices, with 2015 as a base year with an index value of 100. Denmark's ratio was lower than the average of OECD countries.

In 2023, the annual house price to rent ratio in Belgium reached an index value of *****. The house price to rent index is based on the nominal purchase price of a house divided by the annual rent of a similar place, with 2015 chosen as a baseline year. An index value of ***** suggests that house price growth has outpaced rental growth by about ** percent since 2015. That was notably lower than the average house price to rent ration in the OECD countries.

The aggregate house price to income ratio of OECD countries from 2005 to 2023 increased overall. In 2023, the aggregate house price to income ratio of the OECD countries amounted to ***** percent, which means that since 2015, the growth of house prices had outpaced income growth by ** percent.This ratio was calculated by dividing nominal house prices by nominal disposable income per head. The house price to income ratio of OECD countries varies strongly.

Portugal PT: Standardised Price-Rent Ratio: sa data was reported at 133.415 Ratio in Dec 2024. This records an increase from the previous number of 130.465 Ratio for Sep 2024. Portugal PT: Standardised Price-Rent Ratio: sa data is updated quarterly, averaging 101.215 Ratio from Mar 1988 (Median) to Dec 2024, with 148 observations. The data reached an all-time high of 133.415 Ratio in Dec 2024 and a record low of 72.752 Ratio in Jun 2013. Portugal PT: Standardised Price-Rent Ratio: sa data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Portugal – Table PT.OECD.AHPI: House Price Index: Seasonally Adjusted: OECD Member: Quarterly. Nominal house prices divided by rent price indices. The long-term average is calculated over the whole period available when the indicator begins after 1980 or after 1980 if the indicator is longer. This value is used as a reference value. The ratio is calculated by dividing the indicator source on this long-term average, and indexed to a reference value equal to 100.