Abstract
This paper examines the effects that different factors have on prices in the housing market between both rental and total purchase of housing units over the last thirty (30) years. The study uses time series government data with time periods to analyze both major determinants of a current housing unit’s price, rental prices, as well as reasons for changes in prices of those retail/rental units over time. For simplicity purposes, all major analysis is limited to the United States’ housing markets, although inferences and conclusions may be made regarding other countries as well for comparison, especially through literature review. Results from extensive research show that housing prices for both rental and purchase units have risen drastically over the last thirty years due to a variety of factors mainly split between time periods, but are all largely correlated with Income (I), and mortgage rates, as well as time specific economic issues.
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