Then the people who are living in these properties (and/or renting them) find themselves stuck because of the imputed cost of living there (plus the literal, actual mortgages)
Nicole, you might want to edit this (and really, the whole piece) because while I think I get your overall point (rising rents have caused housing purchase prices to rise also) the way you’ve made it doesn’t make a whole lot of sense.
Just to look at the section I’ve quoted: You don’t add the mortgage to the imputed rent to figure out housing cost, you consider the mortgage (and other expenses associated with homeownership) as an alternative to imputed rent. (As in, if imputed rent is higher than your mortgage+tax+maint. then you are saving money by owning your house, and vice-versa.)
And if you are trying to figure out the Return on Investment of buying a home, you DO add the imputed rent to any increase in the value of the property you expect to realize to figure out the total “revenue” from owning the house.
So, the point I think you were trying to make is that rising actual rents cause people to either consider buying houses for the purpose of renting them, or ask for more money when selling a property because the buyer will be getting more value out of the house.