QuestionAugust 2, 2025

As home prices have fallen in recent years.the rent ratio: a) and rent attractiveness have increased. b) has increased and rent attractiveness has decreased. C) has decreased and rent attractiveness has increased. d) and rent attractiveness have decreased. e) has increased and rent attractiveness has stabilized.

As home prices have fallen in recent years.the rent ratio: a) and rent attractiveness have increased. b) has increased and rent attractiveness has decreased. C) has decreased and rent attractiveness has increased. d) and rent attractiveness have decreased. e) has increased and rent attractiveness has stabilized.
As home prices have fallen in recent years.the rent ratio:
a) and rent attractiveness have increased.
b) has increased and rent attractiveness has decreased.
C) has decreased and rent attractiveness has increased.
d) and rent attractiveness have decreased.
e) has increased and rent attractiveness has stabilized.

Solution
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Answer

c) has decreased and rent attractiveness has increased. Explanation 1. Define Rent Ratio Rent ratio is calculated as the price of a home divided by annual rent. 2. Analyze Impact of Falling Home Prices If home prices fall, the numerator decreases, leading to a decrease in the rent ratio. 3. Determine Rent Attractiveness Lower rent ratio means renting becomes more attractive compared to buying.

Explanation

1. Define Rent Ratio<br /> Rent ratio is calculated as the price of a home divided by annual rent. <br />2. Analyze Impact of Falling Home Prices<br /> If home prices fall, the numerator decreases, leading to a decrease in the rent ratio.<br />3. Determine Rent Attractiveness<br /> Lower rent ratio means renting becomes more attractive compared to buying.
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