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If you look at the numbers, the key driver is rents (technically listed as "shelter"). Shelter has a large weight in the CPI basket, and its 12-month increase
by tlogan 1y ago
If you look at the numbers, the key driver is rents (technically listed as "shelter").
Shelter has a large weight in the CPI basket, and its 12-month increase was 3.6% (comparing to 2.9%)
Rents in San Francisco (and LA) are skyrocketing. And that cannot be easily explained.
Not sure what’s causing this. What do you think?
- marticode 1y agoLack of construction is likely the problem. High financing costs, expensive construction material (a lot of it is imported, like Canadian wood) and disappearing construction workers is probably all contributing.
- tlogan 1y agoBut house prices did not increase. According to Redfin, the median home sale price was up 1.2% YoY in July 2025. [1] [1] https://www.redfin.com/us-housing-market https://www.redfin.com/us-housing-market
- jeffbee 1y agoShelter prices roll into CPI over 12 months.
- skeezyboy 1y ago> expensive construction material (a lot of it is imported, like Canadian wood) Im sorry but the single justification for the richest country on the planet still building houses out of wood was that it was cheap and abundant. Now I find theyre importing at increased cost.... so tell me again why you all live in wooden sheds?
- mlinsey 1y agoThose markets are very supply constrained. Despite a few recent piecemeal reforms, it's still very hard to build new housing (and it takes time to build more, with things like construction costs also becoming more expensive recently). When supply is constrained, anything that increases demand - like return-to-office mandates finally bringing back workers who left for other states during the pandemic, or a boom in AI investment causing headcount and salary growth in a small sector that's very geographically concentrated in a single rent market - will greatly increase the price.