Southern California home prices hit another record high

Los Angeles Times quoted Richard Green of the USC Lusk Center about the impact of rising housing prices on rental costs.

Richard Green, director of the USC Lusk Center for Real Estate, doesn’t foresee a crash, but he noted that while home-price gains are accelerating, there are signs that rent growth is slowing. Rent, he said, can be a better gauge of how much housing cost incomes can support; buyers see their home as a financial investment that will increase in value, making them more prone to throw caution to the wind. “I don’t think prices can increase at this rate for very long,” Green said.