So ... if monthly rent ~ 0.8-1% of the property cost, then
annual rent costs are 9.6-12%
whereas ownership is 4% RE tax, 1% maintenance, 3% risk free opportunity cost, 2% risk premium of mortgage bonds, so 4+1+3+2=10%
These numbers are about the same which means the market is fairly priced.
Hence making money in real estate can be attributed to heavy leveraging, speculation, flipping, and/or fixer-uppers.
EDIT: Should add inflation (3%) to the rent cost ... I don't know if that's already part of the 0.8-1% though?! If not, that changes the equation in