CH 14

9.

Occasionally, it has been the case that home prices and mortgage rates dropped so low that in a number of cities the monthly cost of owning a home was less expensive than renting. The following data show the average asking rent for10 marketsand the monthly mortgage on the median priced home (including taxes and insurance) for10 citieswhere the average monthly mortgage payment was less than the average asking rent.

200- 200- 100 100 Residuals 0 Residuals 0 -100- -100- -200- -200- 700 800 900 1000 1100 700 800 900 1000 1100 O Rent ($) Rent ($) i 200- 200 100 100+ Residuals 0 Residuals 0- -100 -100 -200- -200- 700 800 900 1000 1100 700 800 900 1000 1100 O Rent ($) Rent ($)