Appreciation

Rent vs Price Divergence

When asset prices outrun rent growth, compressing yields and elevating appreciation reliance.

Reviewed 9 August 2026 by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

Sun Belt 2020–22 saw prices double while rents grew 25% — yields collapsed.

Examples

Boise cap rates moved from 5.5% to 3.5% in 18 months.

Common mistakes

Buying into compressed yields hoping for further price expansion.

Rent vs Price Divergence

Plain-English explanation

Examples

Common mistakes

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