Its baseline value starts in 1890 — and given its trend lines, indicates that home prices have much further to fall.
The second chart is Altig’s own — it shows the price-to-rent ratios in the US since 1987:
As Altig points out, Dave Leonhardt has already written that even those ratios are still elevated in areas like LA and New York, indicating that even by price-to-rent ratios, there still may be further corrections even if you find the second metric more compelling. That said, we’ll second Altig’s summary:
Here’s hoping my chart is more predictive of housing prices than the alternative.