Core CPI understates localized inflation in certain assets. Real estate happens to be highly inelastic, illiquid, and has a limited supply due to NIMBYism. The

Core CPI understates localized inflation in certain assets. Real estate happens to be highly inelastic, illiquid, and has a limited supply due to NIMBYism. The federal government has also handed people tens of thousands of dollars in printed money through stimulus checks and extended unemployment benefits. That lets people stay where they live now instead of moving to a place they can afford, which takes supply off the market and brings up prices. Whether you think this is good is a political opinion, but you can't deny that there is an impact on prices. I bet if you adjust by the price of SPY as inflation instead of CPI you'd get a different story.