Tag: Owners equivalent rent

CPI Housing Data Lags Real World Housing Data

CPI Housing Data Lags Real World Housing Data

CPI housing data as measured by Owners’ Equivalent Rent ("OER"), lags real world data by approximately six months given the methodology of the CPI Housing Survey. Therefore, softness in the housing market is unlikely to appear in CPI releases before December 2022. This is worth noting given that OER has a weighting of approximately 24% … Continue reading CPI Housing Data Lags Real World Housing Data

Consumer Prices Have Upside Risk From Here

Consumer Prices Have Upside Risk From Here

Last month we wrote that peak inflation as measured by the CPI was not in sight. We saw further evidence in today's reported 7.5% CPI figure. Producers have yet to fully push through price increases for goods and services for calendar year 2022 across categories. In addition, we keep harping on the BLS' owners' equivalent … Continue reading Consumer Prices Have Upside Risk From Here

Real Rental Data Tells A Different Story Than The Fed About Price Inflation

Real Rental Data Tells A Different Story Than The Fed About Price Inflation

We reviewed Zillow (ticker: ZG) Rental data for clues to true rental price inflation. Zillow rental data tells a different story than the Fed's rental survey data (Owners' equivalent rent of residences), which is comprised of hypothetical information based on homeowner assumptions (see page 1, heading labeled: Weights for OER and Rent). The Fed's rental … Continue reading Real Rental Data Tells A Different Story Than The Fed About Price Inflation