Zillow reposted this
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LinkedIn news weighing in on the 'sticky' part of the #inflation story. While annual #rent increases slowed to just 3.6% in April, the rent components of the CPI are running between 5.5%-6%. To make sense of it all, here's Zillow research on why rent increases in the consumer price index #cpi can continue to exceed increases in market rents and remain elevated long after any market pressure has dissipated: https://lnkd.in/gGBb8Wuk Want to know the latest as well as what's going on in your local market? Look no further than Zillow's monthly rental market report: https://lnkd.in/grngerwp ➡️ The typical U.S. rent is $1,997 as of April, up 0.6% month over month. The pre-pandemic average month-over-month change for this time of year is 0.7%. U.S. rents are now up 3.6% from last year. Since the beginning of the pandemic, rents have increased by 31.4%. ➡️ Rents are up from year-ago levels in 48 of the 50 largest metro areas. Annual rent increases are highest in Providence (7.7%), Louisville (7%), Buffalo (6.5%), Cleveland (6.5%) and Hartford (6.2%). ➡️ Rents fell, on a monthly basis, in just one major metro area; rents fell 0.1% in Oklahoma City. From LinkedIn news: https://lnkd.in/gv5jT96Z
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1moOK folks let's get this straight. The Fed uses "Shelter Rents" at +5.8% rents doesn't match-up to any other rent data. They also use this data to control 43% of the CORE CPI. Apartment rents are negative YoY. "New Rents" which is also produced by the Labor Dept are also negative." Change-out "Shelter" with "New Rents" at -5% and the CPI turns negative. In addition, rents are not controlled by interest rates, they are controlled by supply and demand for rental housing. Waiting for Labor's Shelter Data data to decline in order to reduce rates makes absolutely no sense. It's really high-time that everyone understands this.