The work by DeutscheDPB.XE +0.22% economists Peter Hooper, Torsten Slok and Matthew Luzzetti ranks different countries’ housing markets according to an average of two ratios: home prices to income and home prices to rent. Those metrics are calculated for each country on the basis of how far or below they are from their historical norms and then combined with equal weights to come up with an overall estimate of over- or undervaluation.
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
