As financial news reports continue to be dominated by inflation statistics, it's important to realize that rent is 40 percent of the core consumer price index (CPI).
Newsworthy was the spike in core inflation, as the CPI measured a jump in core inflation to 4.5 percent in June, the highest in 30 years.
Frank Nothaft, Executive, Chief Economist, CoreLogic, shared in a recent blog that tenant rent and housing characteristics are used to calculate an "equivalent" rent for owner-occupied homes in the index. During the pandemic, this method may have led to distorted estimates for owner-occupied rent because most tenants live in multi-unit properties whereas 9-in-10 owner-occupants live in one-unit homes.
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