Today, we rant about rent and the housing market. Like a fun house mirror without the fun, several housing-related forces are distorting economic activity. There’s the distortive way rent inflation is measured in the headline CPI; if the BLS’s new All Tenant Rent index were used instead, the Fed would be fighting too-low inflation! … There are the forces messing with supply and demand, depressing the supply of homes for sale (Baby Boomers aren’t moving) and elevating demand for rental units. … Housing affordability has suffered as a result, with home prices up 46% just since the lockdown ended. The good news is that new rental supply is ameliorating rent inflation.
Below is exclusive early access to Dr Ed's Webcast for paid members. This post and video will open to the public on a later date.
