Apr-23: Rent Inflation and Market Data

12 May 2023

Matching Market Rental Data to​​ 

Apr-23 CPI Shelter Data


The BLS reported that CPI shelter increased year-over-year by 8.1% (Col 2 Table 1). The CPI rent indices (OER and Shelter) are lagging indicators of the market by about 12 months. Columns 3 and 4 show year-over-year rent appreciation for three-bedroom single family properties and apartments (all bedroom sizes) in multi-unit buildings.​​ 

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Recognizing the long lag structure of Shelter based upon market data, CPI Shelter will slow but remain a major contributor to core CPI. This might require additional interest rate hikes by the Federal Reserve.​​