Question · Q4 2025
Alexander Goldfarb followed up on the lack of rent growth, asking if the traditional 20% rent-to-income ratio still holds, or if inflationary pressures on other living costs might necessitate a lower ratio for residents.
Answer
Chairman and CEO Ric Campo affirmed that the 20% rent-to-income ratio remains a good and affordable benchmark. He noted that residents' real wages have increased 4%-5% annually, suggesting that current consumer sentiment about affordability is more psychological, influenced by high single-family home prices and a general narrative of expense, despite flat rents and lower gas prices.
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