Inflation is hitting renters harder than homeowners, according to a new analysis from Chandan Economics.
The firm eyed Bureau of Labor Statistics data and found that the adjusted CPI inflation rate for renters was 7.8% in October, while the adjusted CPI inflation rate for fixed-rate homeowners totaled just 5.6% over the same period.
"While both renters and homeowners are still experiencing higher-than-average inflation levels, the spread between the two has never been wider than today," Chandan's Jonathan O'Kane writes. "Between 2014 and 2020, the personal inflation rate for renters averaged 1.1 percentage points higher than for fixed-rate homeowners. Moreover, this differential remained consistent, never dropping below 0.9 percentage points or rising above 1.2 percentage points. As of the October 2022 observation, this spread has increased up to 2.2 percentage points."
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