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Monday, 23 March 2020

How do residential rents typically behave under inflation?

Bernie Cerra: The BLS uses the rents as part of the market basket when calculating the CPI so they have the numbers you want somewhere on their web site. http://www.bls.gov/cpi/cpifact6.htmEdit: since rents are over 30% of the CPI you should probably also look at the CPI excluding rents or even better the dependence of rents on wages, which also lag prices. Another important factor is the price of gas, since when people decide where to rent and how much to pay, they tend fold in the cost of commuting to their job, and if gas prices increase as much they are expected to, it will put a downward pressure on rents....Show more

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