1. Download the entire S&P CoreLogic Case-Shiller U.S. National
Home Price Index (CSUSHPINSA) series from https://fred.stlouisfed.org/series/CSUSHPINSA
Using ‘tq_get’ can only provide data from 2015. So, we will download
the data directly from the webiste.
## observation_date CSUSHPINSA
## 1 1987-01-01 63.733
## 2 1987-02-01 64.132
## 3 1987-03-01 64.468
## 4 1987-04-01 64.972
## 5 1987-05-01 65.546
## 6 1987-06-01 66.218
2. Download the entire 30-Year Fixed Rate Mortgage Average in the
United States (MORTGAGE30US) from https://fred.stlouisfed.org/series/MORTGAGE30US
##
## Attaching package: 'dplyr'
## The following objects are masked from 'package:stats':
##
## filter, lag
## The following objects are masked from 'package:base':
##
## intersect, setdiff, setequal, union
## observation_date MORTGAGE30US
## 1 1987-01-02 9.37
## 2 1987-01-09 9.32
## 3 1987-01-16 9.21
## 4 1987-01-23 9.04
## 5 1987-01-30 9.08
## 6 1987-02-06 9.06
3. Plot the Home Prices and Average Monthly Mortgage Rate (beginning
Jan-1-1987).
a.Home Prices = HPI Index Value*$1,000
b.Calculate average monthly values for the 30-year mortgage rates.
The print is weekly.
##
## Attaching package: 'lubridate'
## The following objects are masked from 'package:base':
##
## date, intersect, setdiff, union
## # A tibble: 6 × 2
## month avg_rate
## <date> <dbl>
## 1 1987-01-01 9.20
## 2 1987-02-01 9.08
## 3 1987-03-01 9.04
## 4 1987-04-01 9.83
## 5 1987-05-01 10.6
## 6 1987-06-01 10.5
4.Calculate the assumed monthly rent for the corresponding monthly
home price. The assumed monthly rent has a gross rental yield of 8.00%.
(Gross Rental Yield = Annual Rent/Home Price)
## observation_date CSUSHPINSA Annual_Rent Monthly_Rent
## 1 1987-01-01 63.733 5098.64 424.8867
## 2 1987-02-01 64.132 5130.56 427.5467
## 3 1987-03-01 64.468 5157.44 429.7867
## 4 1987-04-01 64.972 5197.76 433.1467
## 5 1987-05-01 65.546 5243.68 436.9733
## 6 1987-06-01 66.218 5297.44 441.4533
5. Calculate the monthly mortgage payment amounts (P&I) assuming
a 30 year mortgage on 90% of the value of the home for every
period.
Dataset: csushpinsa_data for Home Price
## observation_date CSUSHPINSA Annual_Rent Monthly_Rent
## 1 1987-01-01 63.733 5098.64 424.8867
## 2 1987-02-01 64.132 5130.56 427.5467
## 3 1987-03-01 64.468 5157.44 429.7867
## 4 1987-04-01 64.972 5197.76 433.1467
## 5 1987-05-01 65.546 5243.68 436.9733
## 6 1987-06-01 66.218 5297.44 441.4533
Dataset: average monthly mortgage rate
## # A tibble: 6 × 2
## month avg_rate
## <date> <dbl>
## 1 1987-01-01 9.20
## 2 1987-02-01 9.08
## 3 1987-03-01 9.04
## 4 1987-04-01 9.83
## 5 1987-05-01 10.6
## 6 1987-06-01 10.5
Merge the two datasets for analysis:
## observation_date CSUSHPINSA Annual_Rent Monthly_Rent avg_rate
## 1 1987-01-01 63.733 5098.64 424.8867 9.2040
## 2 1987-02-01 64.132 5130.56 427.5467 9.0825
## 3 1987-03-01 64.468 5157.44 429.7867 9.0350
## 4 1987-04-01 64.972 5197.76 433.1467 9.8325
## 5 1987-05-01 65.546 5243.68 436.9733 10.5960
## 6 1987-06-01 66.218 5297.44 441.4533 10.5375
Get the monthly mortgage payment amounts (monthly payments):
## observation_date Home_Price avg_rate monthly_payment Monthly_Rent
## 1 1987-01-01 63733 9.2040 469.9733 424.8867
## 2 1987-02-01 64132 9.0825 467.8489 427.5467
## 3 1987-03-01 64468 9.0350 468.3136 429.7867
## 4 1987-04-01 64972 9.8325 505.9353 433.1467
## 5 1987-05-01 65546 10.5960 543.8560 436.9733
## 6 1987-06-01 66218 10.5375 546.8214 441.4533
6.Home ownership also includes certain fixed expenses such as taxes,
insurance and HOA fees (if applicable). The fixed expense equates to
about 1.7% of the value of the home.
a. Calculate the monthly additional fixed expense burden on home
owner.
## observation_date Home_Price Fixed_Expense
## 1 1987-01-01 63733 90.28842
## 2 1987-02-01 64132 90.85367
## 3 1987-03-01 64468 91.32967
## 4 1987-04-01 64972 92.04367
## 5 1987-05-01 65546 92.85683
## 6 1987-06-01 66218 93.80883
b. Calculate the total cost of owning a home.
## observation_date Home_Price Fixed_Expense monthly_payment Buy_Total_Cost
## 1 1987-01-01 63733 90.28842 469.9733 560.2617
## 2 1987-02-01 64132 90.85367 467.8489 558.7025
## 3 1987-03-01 64468 91.32967 468.3136 559.6433
## 4 1987-04-01 64972 92.04367 505.9353 597.9790
## 5 1987-05-01 65546 92.85683 543.8560 636.7128
## 6 1987-06-01 66218 93.80883 546.8214 640.6302
7. Compare in which periods it is cheaper to own a home vs renting a
home?
Restructure the data and only keep the total costs for buying the
home and monthly payment for renting the home.
## observation_date Buy_Total_Cost Monthly_Rent
## 1 1987-01-01 560.2617 424.8867
## 2 1987-02-01 558.7025 427.5467
## 3 1987-03-01 559.6433 429.7867
## 4 1987-04-01 597.9790 433.1467
## 5 1987-05-01 636.7128 436.9733
## 6 1987-06-01 640.6302 441.4533
Visualize the costs for renting and buying the home.
## Warning: Using `size` aesthetic for lines was deprecated in ggplot2 3.4.0.
## ℹ Please use `linewidth` instead.
## This warning is displayed once every 8 hours.
## Call `lifecycle::last_lifecycle_warnings()` to see where this warning was
## generated.
Next, we will take a look at specific time for the comparison. In
the last column, we can tell if it is cheaper to own a home than to rent
a home.
## observation_date Buy_Total_Cost Monthly_Rent Cheaper_to_Buy
## 1 1987-01-01 560.2617 424.8867 FALSE
## 2 1987-02-01 558.7025 427.5467 FALSE
## 3 1987-03-01 559.6433 429.7867 FALSE
## 4 1987-04-01 597.9790 433.1467 FALSE
## 5 1987-05-01 636.7128 436.9733 FALSE
## 6 1987-06-01 640.6302 441.4533 FALSE
## 7 1987-07-01 634.4882 445.2400 FALSE
## 8 1987-08-01 641.4296 448.4667 FALSE
## 9 1987-09-01 670.2222 450.8200 FALSE
## 10 1987-10-01 690.2038 452.6733 FALSE
## 11 1987-11-01 663.9157 453.9400 FALSE
## 12 1987-12-01 665.9017 455.6133 FALSE
## 13 1988-01-01 656.3355 457.2000 FALSE
## 14 1988-02-01 636.9911 459.4200 FALSE
## 15 1988-03-01 642.4968 462.1467 FALSE
## 16 1988-04-01 659.4510 465.2467 FALSE
## 17 1988-05-01 677.2585 469.3867 FALSE
## 18 1988-06-01 683.8364 473.7800 FALSE
## 19 1988-07-01 688.4341 477.9000 FALSE
## 20 1988-08-01 701.2770 481.2333 FALSE
## 21 1988-09-01 699.3133 483.8267 FALSE
## 22 1988-10-01 693.0269 485.4800 FALSE
## 23 1988-11-01 693.4954 487.0933 FALSE
## 24 1988-12-01 712.6023 488.5133 FALSE
## 25 1989-01-01 721.7757 490.7800 FALSE
## 26 1989-02-01 720.9692 493.1200 FALSE
## 27 1989-03-01 744.7855 496.0600 FALSE
## 28 1989-04-01 750.2870 499.1133 FALSE
## 29 1989-05-01 740.3927 501.9667 FALSE
## 30 1989-06-01 714.9751 504.6333 FALSE
## 31 1989-07-01 702.3646 506.9333 FALSE
## 32 1989-08-01 709.6892 508.4733 FALSE
## 33 1989-09-01 718.2515 509.4667 FALSE
## 34 1989-10-01 709.7930 509.9133 FALSE
## 35 1989-11-01 700.9802 510.1400 FALSE
## 36 1989-12-01 699.5720 509.9800 FALSE
## 37 1990-01-01 707.4973 510.1800 FALSE
## 38 1990-02-01 723.4772 510.5800 FALSE
## 39 1990-03-01 729.0154 511.9333 FALSE
## 40 1990-04-01 736.6354 513.5867 FALSE
## 41 1990-05-01 744.6839 515.3067 FALSE
## 42 1990-06-01 730.4053 516.6933 FALSE
## 43 1990-07-01 724.2629 517.0667 FALSE
## 44 1990-08-01 726.8520 516.5200 FALSE
## 45 1990-09-01 728.3716 514.8533 FALSE
## 46 1990-10-01 725.5196 512.7467 FALSE
## 47 1990-11-01 712.1859 509.2067 FALSE
## 48 1990-12-01 691.1845 506.4800 FALSE
## 49 1991-01-01 685.4475 503.5533 FALSE
## 50 1991-02-01 669.3962 501.6533 FALSE
## 51 1991-03-01 675.0485 500.9067 FALSE
## 52 1991-04-01 676.2858 502.1000 FALSE
## 53 1991-05-01 679.3250 505.1133 FALSE
## 54 1991-06-01 690.8328 508.3400 FALSE
## 55 1991-07-01 691.2189 510.1067 FALSE
## 56 1991-08-01 675.3077 510.6200 FALSE
## 57 1991-09-01 663.3703 510.4933 FALSE
## 58 1991-10-01 653.3911 508.6000 FALSE
## 59 1991-11-01 644.1686 506.8667 FALSE
## 60 1991-12-01 632.1737 505.6200 FALSE
## 61 1992-01-01 627.8226 504.6667 FALSE
## 62 1992-02-01 643.4463 504.3667 FALSE
## 63 1992-03-01 653.2299 505.4267 FALSE
## 64 1992-04-01 651.4699 507.2000 FALSE
## 65 1992-05-01 645.3172 509.3133 FALSE
## 66 1992-06-01 639.1110 510.6800 FALSE
## 67 1992-07-01 621.4382 511.4067 FALSE
## 68 1992-08-01 614.2216 511.5400 FALSE
## 69 1992-09-01 610.8775 510.8533 FALSE
## 70 1992-10-01 618.5853 510.6467 FALSE
## 71 1992-11-01 628.9354 510.5267 FALSE
## 72 1992-12-01 623.2005 509.7600 FALSE
## 73 1993-01-01 612.3703 509.3000 FALSE
## 74 1993-02-01 597.0718 508.8533 FALSE
## 75 1993-03-01 588.6468 509.2200 FALSE
## 76 1993-04-01 589.6956 511.0667 FALSE
## 77 1993-05-01 592.2098 513.5333 FALSE
## 78 1993-06-01 593.6821 516.7733 FALSE
## 79 1993-07-01 586.4286 519.2333 FALSE
## 80 1993-08-01 583.8372 520.8733 FALSE
## 81 1993-09-01 574.9977 521.3200 FALSE
## 82 1993-10-01 570.9915 521.1400 FALSE
## 83 1993-11-01 586.1474 521.1333 FALSE
## 84 1993-12-01 586.5279 520.7533 FALSE
## 85 1994-01-01 581.8478 521.3200 FALSE
## 86 1994-02-01 586.2910 521.3667 FALSE
## 87 1994-03-01 612.5164 522.3267 FALSE
## 88 1994-04-01 646.9038 524.6667 FALSE
## 89 1994-05-01 665.2733 528.0467 FALSE
## 90 1994-06-01 659.2478 531.3333 FALSE
## 91 1994-07-01 673.2999 533.7467 FALSE
## 92 1994-08-01 670.2260 535.4400 FALSE
## 93 1994-09-01 676.9755 535.6000 FALSE
## 94 1994-10-01 691.3978 535.3600 FALSE
## 95 1994-11-01 702.9809 534.4667 FALSE
## 96 1994-12-01 703.6338 533.8533 FALSE
## 97 1995-01-01 700.5469 533.5067 FALSE
## 98 1995-02-01 683.6707 533.2733 FALSE
## 99 1995-03-01 665.6533 533.8467 FALSE
## 100 1995-04-01 660.8184 535.7867 FALSE
## 101 1995-05-01 644.9016 537.9333 FALSE
## 102 1995-06-01 628.3031 540.4533 FALSE
## 103 1995-07-01 633.0580 542.7467 FALSE
## 104 1995-08-01 647.7549 544.3600 FALSE
## 105 1995-09-01 637.0351 544.9200 FALSE
## 106 1995-10-01 628.8237 544.8467 FALSE
## 107 1995-11-01 623.1860 544.2000 FALSE
## 108 1995-12-01 613.4473 543.4200 FALSE
## 109 1996-01-01 604.3946 542.8467 FALSE
## 110 1996-02-01 606.4055 542.6600 FALSE
## 111 1996-03-01 635.8593 544.4333 FALSE
## 112 1996-04-01 654.8201 547.4933 FALSE
## 113 1996-05-01 666.1373 550.6733 FALSE
## 114 1996-06-01 682.8544 553.6533 FALSE
## 115 1996-07-01 681.9340 556.1200 FALSE
## 116 1996-08-01 670.9837 557.6333 FALSE
## 117 1996-09-01 683.4535 558.0067 FALSE
## 118 1996-10-01 666.2891 557.5200 FALSE
## 119 1996-11-01 650.2727 557.0400 FALSE
## 120 1996-12-01 648.7000 556.6000 FALSE
## 121 1997-01-01 660.7608 556.8667 FALSE
## 122 1997-02-01 652.2407 557.3067 FALSE
## 123 1997-03-01 667.6255 559.4067 FALSE
## 124 1997-04-01 683.8577 562.1400 FALSE
## 125 1997-05-01 677.6770 565.7600 FALSE
## 126 1997-06-01 668.4188 569.3200 FALSE
## 127 1997-07-01 661.6673 572.2733 FALSE
## 128 1997-08-01 663.1204 574.3333 FALSE
## 129 1997-09-01 661.6968 575.4000 FALSE
## 130 1997-10-01 655.2436 576.0533 FALSE
## 131 1997-11-01 652.2356 577.5467 FALSE
## 132 1997-12-01 648.0529 578.9867 FALSE
## 133 1998-01-01 645.0727 581.0867 FALSE
## 134 1998-02-01 649.1901 582.4867 FALSE
## 135 1998-03-01 657.4651 585.8467 FALSE
## 136 1998-04-01 663.2253 590.3800 FALSE
## 137 1998-05-01 669.5614 595.8267 FALSE
## 138 1998-06-01 667.6952 601.2933 FALSE
## 139 1998-07-01 670.1219 605.7267 FALSE
## 140 1998-08-01 672.5379 609.3800 FALSE
## 141 1998-09-01 664.0649 611.6800 FALSE
## 142 1998-10-01 665.1656 613.3267 FALSE
## 143 1998-11-01 675.1599 614.6467 FALSE
## 144 1998-12-01 669.9226 616.2867 FALSE
## 145 1999-01-01 674.4947 618.0933 FALSE
## 146 1999-02-01 677.6911 619.8733 FALSE
## 147 1999-03-01 695.3974 624.0733 FALSE
## 148 1999-04-01 694.4469 629.5667 FALSE
## 149 1999-05-01 714.4645 635.7333 FALSE
## 150 1999-06-01 745.8920 642.4200 FALSE
## 151 1999-07-01 757.2369 647.9467 FALSE
## 152 1999-08-01 781.6593 652.6467 FALSE
## 153 1999-09-01 778.2894 655.9933 FALSE
## 154 1999-10-01 783.5331 658.8800 FALSE
## 155 1999-11-01 778.9666 660.9867 FALSE
## 156 1999-12-01 792.8938 663.6133 FALSE
## 157 2000-01-01 815.2774 666.6667 FALSE
## 158 2000-02-01 827.2546 670.4733 FALSE
## 159 2000-03-01 829.1538 676.4400 FALSE
## 160 2000-04-01 832.2716 683.6067 FALSE
## 161 2000-05-01 865.5444 691.3467 FALSE
## 162 2000-06-01 860.0337 699.0333 FALSE
## 163 2000-07-01 857.7568 704.8133 FALSE
## 164 2000-08-01 856.2036 710.1467 FALSE
## 165 2000-09-01 853.3832 714.2400 FALSE
## 166 2000-10-01 850.2389 718.1933 FALSE
## 167 2000-11-01 851.3124 721.9467 FALSE
## 168 2000-12-01 830.8486 725.2800 FALSE
## 169 2001-01-01 810.8172 728.1000 FALSE
## 170 2001-02-01 815.1564 730.9533 FALSE
## 171 2001-03-01 814.2078 735.9667 FALSE
## 172 2001-04-01 828.9429 741.6533 FALSE
## 173 2001-05-01 840.6571 748.0200 FALSE
## 174 2001-06-01 849.7071 755.1533 FALSE
## 175 2001-07-01 854.6067 761.5133 FALSE
## 176 2001-08-01 847.9516 766.5933 FALSE
## 177 2001-09-01 842.2581 769.7667 FALSE
## 178 2001-10-01 830.0115 771.2067 FALSE
## 179 2001-11-01 833.9313 772.2533 FALSE
## 180 2001-12-01 863.8820 773.7000 FALSE
## 181 2002-01-01 861.9615 776.2400 FALSE
## 182 2002-02-01 858.1113 779.4400 FALSE
## 183 2002-03-01 874.1904 786.1933 FALSE
## 184 2002-04-01 881.5893 794.7267 FALSE
## 185 2002-05-01 880.2535 805.2533 FALSE
## 186 2002-06-01 880.1065 815.5533 FALSE
## 187 2002-07-01 877.7400 824.5867 FALSE
## 188 2002-08-01 870.8095 831.5333 FALSE
## 189 2002-09-01 861.6814 836.6333 FALSE
## 190 2002-10-01 867.5562 840.9133 FALSE
## 191 2002-11-01 867.7617 844.2867 FALSE
## 192 2002-12-01 869.7302 847.6733 FALSE
## 193 2003-01-01 863.4526 851.0133 FALSE
## 194 2003-02-01 862.5852 855.5067 FALSE
## 195 2003-03-01 861.9625 862.0533 TRUE
## 196 2003-04-01 874.8779 869.9267 FALSE
## 197 2003-05-01 859.2984 878.9333 TRUE
## 198 2003-06-01 849.3569 888.1667 TRUE
## 199 2003-07-01 888.9175 897.6467 TRUE
## 200 2003-08-01 947.1755 906.4333 FALSE
## 201 2003-09-01 945.5933 913.8467 FALSE
## 202 2003-10-01 936.1572 919.8467 FALSE
## 203 2003-11-01 939.9490 925.1067 FALSE
## 204 2003-12-01 941.2505 930.8600 FALSE
## 205 2004-01-01 935.3293 938.0400 TRUE
## 206 2004-02-01 937.8475 946.8533 TRUE
## 207 2004-03-01 935.9017 960.5267 TRUE
## 208 2004-04-01 981.5476 974.5333 FALSE
## 209 2004-05-01 1033.8772 988.9067 FALSE
## 210 2004-06-01 1050.6432 1003.4667 FALSE
## 211 2004-07-01 1042.7707 1015.5933 FALSE
## 212 2004-08-01 1036.1276 1025.4333 FALSE
## 213 2004-09-01 1034.7558 1034.0667 FALSE
## 214 2004-10-01 1039.8811 1042.0000 TRUE
## 215 2004-11-01 1048.5261 1049.9867 TRUE
## 216 2004-12-01 1058.3368 1057.8133 FALSE
## 217 2005-01-01 1064.2267 1067.5400 TRUE
## 218 2005-02-01 1068.5423 1079.5000 TRUE
## 219 2005-03-01 1114.3560 1097.1800 FALSE
## 220 2005-04-01 1123.7511 1113.3400 FALSE
## 221 2005-05-01 1127.7662 1130.3067 TRUE
## 222 2005-06-01 1130.6964 1146.7800 TRUE
## 223 2005-07-01 1155.5680 1160.6600 TRUE
## 224 2005-08-01 1180.2587 1172.8267 FALSE
## 225 2005-09-01 1186.8948 1184.0733 FALSE
## 226 2005-10-01 1224.5098 1191.6867 FALSE
## 227 2005-11-01 1258.6294 1197.8333 FALSE
## 228 2005-12-01 1255.5339 1200.7200 FALSE
## 229 2006-01-01 1247.1358 1205.5200 FALSE
## 230 2006-02-01 1263.1647 1210.0000 FALSE
## 231 2006-03-01 1279.5188 1218.3267 FALSE
## 232 2006-04-01 1305.6856 1224.3200 FALSE
## 233 2006-05-01 1320.7342 1229.2000 FALSE
## 234 2006-06-01 1331.2163 1230.3133 FALSE
## 235 2006-07-01 1340.5292 1230.7133 FALSE
## 236 2006-08-01 1312.8627 1229.3600 FALSE
## 237 2006-09-01 1298.1710 1227.9867 FALSE
## 238 2006-10-01 1292.2797 1227.0267 FALSE
## 239 2006-11-01 1276.6522 1224.2067 FALSE
## 240 2006-12-01 1262.6279 1221.5267 FALSE
## 241 2007-01-01 1267.9006 1218.1200 FALSE
## 242 2007-02-01 1273.3966 1216.4733 FALSE
## 243 2007-03-01 1257.7247 1214.6267 FALSE
## 244 2007-04-01 1259.8457 1214.2133 FALSE
## 245 2007-05-01 1266.8559 1212.5667 FALSE
## 246 2007-06-01 1306.8736 1210.2667 FALSE
## 247 2007-07-01 1306.9837 1206.6200 FALSE
## 248 2007-08-01 1288.3057 1201.5600 FALSE
## 249 2007-09-01 1260.2865 1194.1467 FALSE
## 250 2007-10-01 1248.2944 1183.5267 FALSE
## 251 2007-11-01 1214.4894 1167.7400 FALSE
## 252 2007-12-01 1190.4220 1155.5733 FALSE
## 253 2008-01-01 1141.6581 1140.5067 FALSE
## 254 2008-02-01 1144.5598 1127.9267 FALSE
## 255 2008-03-01 1140.9402 1119.3467 FALSE
## 256 2008-04-01 1131.9296 1115.4800 FALSE
## 257 2008-05-01 1141.3261 1113.4667 FALSE
## 258 2008-06-01 1165.6192 1110.2467 FALSE
## 259 2008-07-01 1170.1907 1104.7533 FALSE
## 260 2008-08-01 1165.0543 1095.1867 FALSE
## 261 2008-09-01 1106.5615 1079.4133 FALSE
## 262 2008-10-01 1102.8225 1061.0867 FALSE
## 263 2008-11-01 1071.1776 1040.4800 FALSE
## 264 2008-12-01 977.2864 1016.9600 TRUE
## 265 2009-01-01 937.1303 995.7467 TRUE
## 266 2009-02-01 932.9127 984.1133 TRUE
## 267 2009-03-01 915.6299 976.7600 TRUE
## 268 2009-04-01 902.8258 979.6133 TRUE
## 269 2009-05-01 914.2067 987.8000 TRUE
## 270 2009-06-01 970.9371 998.6467 TRUE
## 271 2009-07-01 960.4073 1004.9933 TRUE
## 272 2009-08-01 957.4191 1004.4533 TRUE
## 273 2009-09-01 939.6246 997.5200 TRUE
## 274 2009-10-01 924.4504 990.5667 TRUE
## 275 2009-11-01 914.2012 986.2667 TRUE
## 276 2009-12-01 910.7357 977.7667 TRUE
## 277 2010-01-01 908.3823 966.6867 TRUE
## 278 2010-02-01 893.0235 953.6933 TRUE
## 279 2010-03-01 894.6319 957.3067 TRUE
## 280 2010-04-01 916.3392 969.3467 TRUE
## 281 2010-05-01 909.6255 980.2467 TRUE
## 282 2010-06-01 901.6846 984.6867 TRUE
## 283 2010-07-01 887.0133 983.7467 TRUE
## 284 2010-08-01 869.4990 976.1733 TRUE
## 285 2010-09-01 852.4370 964.0467 TRUE
## 286 2010-10-01 834.5683 954.1800 TRUE
## 287 2010-11-01 832.5381 945.4467 TRUE
## 288 2010-12-01 856.6912 937.5067 TRUE
## 289 2011-01-01 850.0824 926.8933 TRUE
## 290 2011-02-01 856.9454 918.1933 TRUE
## 291 2011-03-01 848.5034 918.5533 TRUE
## 292 2011-04-01 857.2683 927.7133 TRUE
## 293 2011-05-01 851.2791 937.9467 TRUE
## 294 2011-06-01 849.1351 946.2933 TRUE
## 295 2011-07-01 854.1784 948.9400 TRUE
## 296 2011-08-01 830.0985 945.2267 TRUE
## 297 2011-09-01 808.5537 934.4333 TRUE
## 298 2011-10-01 795.6213 922.7000 TRUE
## 299 2011-11-01 780.2622 911.0667 TRUE
## 300 2011-12-01 769.2935 901.0800 TRUE
## 301 2012-01-01 760.6205 894.4133 TRUE
## 302 2012-02-01 757.9236 893.2733 TRUE
## 303 2012-03-01 772.9794 905.7267 TRUE
## 304 2012-04-01 784.6644 923.1067 TRUE
## 305 2012-05-01 791.1466 940.2867 TRUE
## 306 2012-06-01 794.0754 954.4467 TRUE
## 307 2012-07-01 791.1314 961.8800 TRUE
## 308 2012-08-01 797.2502 964.7000 TRUE
## 309 2012-09-01 787.7182 962.3667 TRUE
## 310 2012-10-01 777.2951 959.7533 TRUE
## 311 2012-11-01 775.0603 959.6933 TRUE
## 312 2012-12-01 774.0588 959.0733 TRUE
## 313 2013-01-01 781.4152 962.0400 TRUE
## 314 2013-02-01 794.6550 967.7200 TRUE
## 315 2013-03-01 812.4125 986.3933 TRUE
## 316 2013-04-01 819.8299 1006.4533 TRUE
## 317 2013-05-01 842.5536 1025.7200 TRUE
## 318 2013-06-01 899.4073 1042.8267 TRUE
## 319 2013-07-01 935.0636 1055.2133 TRUE
## 320 2013-08-01 948.8962 1062.5933 TRUE
## 321 2013-09-01 953.4616 1064.4600 TRUE
## 322 2013-10-01 927.5863 1063.6933 TRUE
## 323 2013-11-01 931.7631 1062.4267 TRUE
## 324 2013-12-01 948.3806 1061.8733 TRUE
## 325 2014-01-01 946.7325 1062.4533 TRUE
## 326 2014-02-01 938.7237 1065.7933 TRUE
## 327 2014-03-01 949.8629 1074.5667 TRUE
## 328 2014-04-01 959.9090 1086.4200 TRUE
## 329 2014-05-01 957.3753 1097.8533 TRUE
## 330 2014-06-01 963.6923 1108.0467 TRUE
## 331 2014-07-01 966.2059 1114.2067 TRUE
## 332 2014-08-01 966.7138 1116.3067 TRUE
## 333 2014-09-01 969.6644 1114.9133 TRUE
## 334 2014-10-01 956.7169 1112.7000 TRUE
## 335 2014-11-01 951.9398 1111.0200 TRUE
## 336 2014-12-01 939.3232 1109.6933 TRUE
## 337 2015-01-01 921.6385 1108.2800 TRUE
## 338 2015-02-01 927.1413 1110.8200 TRUE
## 339 2015-03-01 940.4066 1120.5467 TRUE
## 340 2015-04-01 942.4458 1133.0933 TRUE
## 341 2015-05-01 967.6309 1145.6400 TRUE
## 342 2015-06-01 989.3988 1156.3133 TRUE
## 343 2015-07-01 1001.1140 1163.2800 TRUE
## 344 2015-08-01 990.8602 1166.2133 TRUE
## 345 2015-09-01 990.0957 1166.9067 TRUE
## 346 2015-10-01 981.6652 1166.9333 TRUE
## 347 2015-11-01 995.3673 1167.5267 TRUE
## 348 2015-12-01 997.1558 1167.3400 TRUE
## 349 2016-01-01 988.4391 1166.8133 TRUE
## 350 2016-02-01 970.7881 1168.4533 TRUE
## 351 2016-03-01 981.1734 1177.2800 TRUE
## 352 2016-04-01 983.6591 1189.9333 TRUE
## 353 2016-05-01 993.3928 1202.2600 TRUE
## 354 2016-06-01 999.0949 1212.7200 TRUE
## 355 2016-07-01 993.3648 1220.0533 TRUE
## 356 2016-08-01 996.3577 1224.2933 TRUE
## 357 2016-09-01 1000.2277 1226.2200 TRUE
## 358 2016-10-01 1001.5524 1226.7133 TRUE
## 359 2016-11-01 1030.6919 1228.1267 TRUE
## 360 2016-12-01 1072.5602 1229.2733 TRUE
## 361 2017-01-01 1069.3836 1230.9600 TRUE
## 362 2017-02-01 1073.2055 1233.4067 TRUE
## 363 2017-03-01 1084.7482 1243.4667 TRUE
## 364 2017-04-01 1081.5734 1256.8867 TRUE
## 365 2017-05-01 1089.5581 1270.1933 TRUE
## 366 2017-06-01 1088.8773 1281.6933 TRUE
## 367 2017-07-01 1102.2727 1289.9867 TRUE
## 368 2017-08-01 1098.2486 1295.5533 TRUE
## 369 2017-09-01 1093.4046 1298.6933 TRUE
## 370 2017-10-01 1103.9325 1300.4800 TRUE
## 371 2017-11-01 1108.7317 1302.9267 TRUE
## 372 2017-12-01 1113.8176 1305.5733 TRUE
## 373 2018-01-01 1123.7317 1307.3600 TRUE
## 374 2018-02-01 1158.9866 1312.6200 TRUE
## 375 2018-03-01 1180.8238 1323.7333 TRUE
## 376 2018-04-01 1195.4699 1337.3333 TRUE
## 377 2018-05-01 1219.2597 1349.5733 TRUE
## 378 2018-06-01 1227.0946 1360.1867 TRUE
## 379 2018-07-01 1227.8907 1366.2467 TRUE
## 380 2018-08-01 1232.6255 1368.7600 TRUE
## 381 2018-09-01 1241.4625 1369.0733 TRUE
## 382 2018-10-01 1263.9577 1369.0333 TRUE
## 383 2018-11-01 1266.3724 1367.2867 TRUE
## 384 2018-12-01 1238.4668 1364.5533 TRUE
## 385 2019-01-01 1216.4532 1361.2333 TRUE
## 386 2019-02-01 1207.5685 1362.7333 TRUE
## 387 2019-03-01 1204.1084 1371.7267 TRUE
## 388 2019-04-01 1201.9543 1384.5000 TRUE
## 389 2019-05-01 1203.8764 1395.5933 TRUE
## 390 2019-06-01 1181.6382 1403.8133 TRUE
## 391 2019-07-01 1181.7910 1408.8133 TRUE
## 392 2019-08-01 1167.7477 1411.2000 TRUE
## 393 2019-09-01 1167.5558 1412.3933 TRUE
## 394 2019-10-01 1176.9978 1413.0200 TRUE
## 395 2019-11-01 1178.5305 1413.9533 TRUE
## 396 2019-12-01 1181.9717 1414.8400 TRUE
## 397 2020-01-01 1172.5138 1415.9200 TRUE
## 398 2020-02-01 1159.9594 1421.3867 TRUE
## 399 2020-03-01 1169.0765 1434.5400 TRUE
## 400 2020-04-01 1164.5789 1448.1467 TRUE
## 401 2020-05-01 1163.3169 1456.4533 TRUE
## 402 2020-06-01 1162.8107 1465.3000 TRUE
## 403 2020-07-01 1156.2676 1477.0333 TRUE
## 404 2020-08-01 1160.4329 1493.5867 TRUE
## 405 2020-09-01 1169.7644 1511.9333 TRUE
## 406 2020-10-01 1179.1151 1532.0133 TRUE
## 407 2020-11-01 1184.2941 1548.7067 TRUE
## 408 2020-12-01 1185.7024 1562.3600 TRUE
## 409 2021-01-01 1201.9115 1576.1667 TRUE
## 410 2021-02-01 1224.6005 1594.6867 TRUE
## 411 2021-03-01 1282.3432 1627.9800 TRUE
## 412 2021-04-01 1309.0398 1665.3533 TRUE
## 413 2021-05-01 1326.4133 1702.8467 TRUE
## 414 2021-06-01 1357.7238 1741.0133 TRUE
## 415 2021-07-01 1366.5653 1769.9333 TRUE
## 416 2021-08-01 1380.1356 1791.7733 TRUE
## 417 2021-09-01 1401.2544 1809.4467 TRUE
## 418 2021-10-01 1434.8693 1824.1600 TRUE
## 419 2021-11-01 1447.2870 1839.9467 TRUE
## 420 2021-12-01 1464.9226 1857.0933 TRUE
## 421 2022-01-01 1531.0610 1879.5867 TRUE
## 422 2022-02-01 1605.5216 1914.3800 TRUE
## 423 2022-03-01 1711.6899 1966.4000 TRUE
## 424 2022-04-01 1881.4636 2010.6133 TRUE
## 425 2022-05-01 1953.1671 2042.4133 TRUE
## 426 2022-06-01 2015.1125 2054.3933 TRUE
## 427 2022-07-01 1988.5764 2046.6600 TRUE
## 428 2022-08-01 1934.1633 2023.8667 TRUE
## 429 2022-09-01 2066.1404 2002.7733 FALSE
## 430 2022-10-01 2193.1737 1990.8800 FALSE
## 431 2022-11-01 2162.9029 1978.7800 FALSE
## 432 2022-12-01 2067.5132 1962.0467 FALSE
## 433 2023-01-01 2041.2171 1952.0200 FALSE
## 434 2023-02-01 2044.0195 1957.1667 FALSE
## 435 2023-03-01 2121.6826 1983.4333 FALSE
## 436 2023-04-01 2115.2631 2010.9800 FALSE
## 437 2023-05-01 2157.2646 2036.8000 FALSE
## 438 2023-06-01 2231.0254 2056.4733 FALSE
## 439 2023-07-01 2268.2842 2069.2267 FALSE
## 440 2023-08-01 2321.9052 2078.3333 FALSE
## 441 2023-09-01 2352.5527 2084.0000 FALSE
## 442 2023-10-01 2435.9837 2086.3933 FALSE
## 443 2023-11-01 2395.7814 2081.3267 FALSE
## 444 2023-12-01 2268.2508 2073.4533 FALSE
## 445 2024-01-01 2234.9968 2072.3533 FALSE
## 446 2024-02-01 2273.7385 2085.1533 FALSE
## 447 2024-03-01 2312.5948 2113.1200 FALSE
## 448 2024-04-01 2374.7028 2139.4133 FALSE
## 449 2024-05-01 2409.5588 2158.9000 FALSE
## 450 2024-06-01 2393.1374 2169.2867 FALSE
## 451 2024-07-01 2381.7244 2171.3733 FALSE
## 452 2024-08-01 2310.2672 2167.6533 FALSE
## 453 2024-09-01 2246.6276 2165.2533 FALSE
## 454 2024-10-01 2289.6524 2161.2533 FALSE
## 455 2024-11-01 2360.3439 2159.4133 FALSE
This visualization represents periods when buying a home is cheaper
than renting (in blue) versus when renting is the more affordable option
(in red):
## Warning: Removed 1 row containing missing values or values outside the scale range
## (`geom_segment()`).
8. Write down your conclusions and observations.
(1) From the line chart, the overall trend of living cost (for both
buying and renting) is increasing, and the cost rises sharply after
2020. Besides, there are noticeable fluctuations, particularly around
the 2008 financial crisis, where buying costs spiked and then dropped
significantly.
Also, before 2003, the cost of buying was higher than the cost of
renting. After that, the difference between buying and renting costs
became subtle, as the two lines converged. Around 2008 and beyond, the
cost of renting became higher than the cost of buying until 2022, when
buying costs surged past renting costs.
(2) From the table, we can have a closer look at the comparison of
whether it’s cheaper to buy by month. Before 2003-03-01, renting a home
is cheaper than buying one. During 2003-03-01 to 2005-07-31, there were
alternating short periods where buying became more favorable, but these
periods were relatively brief. Between December 2008 and August 2022,
buying was consistently the better option. Since September 2022, renting
has again become the cheaper option.
(3) From the horizontal bar, an extended period dominated by red,
indicating that renting was the cheaper option for much of the time.
During 2003 to 2006, there’s a transition zone where blue segments begin
to appear, showing a shift toward buying becoming more affordable. After
2009, buying the home is a cheaper choice for most of the time.
(4) To conclude: the fluctuations in costs show that economic events
(e.g., financial crises, interest rate changes) have a significant
impact on the relative affordability of renting vs. buying.
In the long run, homeownership was more expensive than renting
before 2003, but from 2008–2022, buying was the better financial
decision. However, for short-term considerations, renting is now the
more cost-effective option, likely due to rising mortgage rates and
housing prices.