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Shelter in CPI may cover rents instead of just home value? > Shelter, the service the housing units provide, is the relevant consumption item for the CPI. The
by radlad 5y ago
Shelter in CPI may cover rents instead of just home value?
> Shelter, the service the housing units provide, is the relevant consumption item for the CPI. The cost of shelter for renter- occupied housing is rent. For an owner-occupied unit, the cost of shelter is the implicit rent that owner occupants would have to pay if they were renting their homes.
https://www.bls.gov/cpi/factsheets/owners-equivalent-rent-and-rent.pdf https://www.bls.gov/cpi/factsheets/owners-equivalent-rent-an...
- eloff 5y agoRents are obviously a lagging measure as they're typically only increased once per year (and by a regulated amount in some markets.) We're in for a world of hurt in terms of housing and rent over the next couple years.
- radlad 5y agoLeases are typically renewed yearly, but is there reason to believe that the start/end date of leases wouldn't be roughly equally distributed by month? They're not all going to renew tomorrow. That said, the difference in rents and home values is disconcerting.