This analysis investigates and verifies the correlation between regional US housing market prices, vacancy rates, and the federal interest rate over the last 20 years.
Data sets:
- Quarterly Rental Vacancy Rates Source: US Census Bureau
- Federal Interest Rates Source: macrotrends.net (macrotrends.net/2015/fed-funds-rate-historical-chart)
- Housing Market Valuation Source: Quandl API
Findings:
- As Rental Vacancy Rates rise with Interest Rates, Market Valuation decreases.
- Based on the data, this appears be cyclical or tied to major external events.
Citations:
U.S. Census Bureau, Rental Vacancy Rate for the United States [RRVRUSQ156N], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/RRVRUSQ156N, October 5, 2019. https://www.kaggle.com/federalreserve/interest-rates