Why Housing Can Skew Inflation Numbers | WSJ

Build more housing. That's the only solution, but it's a complex problem with backwards tax incentives and overly restrictive housing codes and zoning laws

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You can’t force landlords to reduce rents. So you have no choice but to move out and find cheaper alternatives.

This is why we need to ban 2nd home ownership.
Why must tenants be forced to be landlords’s cash cow?

Funny how the Fed didn’t tackle housing inflation for years as our home prices were skyrocketing. I watched as my home price was going up $5k a month for a few years. Not hard to see this is inflationary as buyers got loans for 2% rates.

Landlords are using rising rates as an excuse to raise rent.

Accomodation tend to be four times larger than you want or need. Furthermore, houses could be made affordable, sustainable and high-quality outside the industry. Building material can be affordable if there was a market.

Encourage building more shelter. Loosen single family only zoning near jobs and transit so homes get built where people can get to work and they’ll buy the homes.

I’m pretty sure that it’s inflation screws the housing market!

Question: if housing is such a large component of inflation and the fed's primary tool to control inflation is increasing prime rates, and subsequently borrowing rates throughout the economy, dosen't that make financing real estate more expensive and consequently drive up rent? Clearly I am missing something here, or forgot something from econ class eons ago...appreciate any clarification.

It makes sense that housing is 1/3 of the CPI though. I'm in the middle class, and half of my take home pay goes into paying my house payment. 😅 (I don't spend much in other areas tho since I WFH so I don't feel squeezed yet.)

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Detroit doesn't have any houses for sale really..all the mayor builds is affordable housing not houses that are affordable..Michigan can't keep building buildings for low income and expect to reap any economic benefits..a woman with 3 kids should not be in an apt..rather an affordable house..build more houses,collect taxes..money for the city..mayor duggan

Why not look at market rents then to avoid the lag?

I thought the experts said it was just transitory inflation? Kind like the other experts who said two weeks to flatten the curve lol.

Who pays…..YOU DO!
Biden’s reckless spending, recession, inflation, crime, attack on our energy sector, and surrender of our southern border.
Inflation and fuel at a 40 year high. Never underestimate Biden’s ability to F things up!!!

I wonder why housing and shelter prices are sooooo high. I guess we'll never know, but I think the Fed is doing the right thing.

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This is the reason why the Fed often overshoots because instead of looking at forward data they're looking at past data.

But it most important cause majority needs house to live

If the fed did its primary job in the first place - control the money supply and not allow congress to increase our balance sheet by 4 trillion…they wouldnr have to play these games with interest rates.

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Skewing inflation numbers, or causing inflation?

This is just ridiculous. Publishing this video now, trying to explain in advance why inflation numbers are going to be high. It was obvious to anyone that rent prices were going up. If I signed my lease today, it would cost me 25% more than year and half ago. Lots of people are forced to stay in the same place, and if moving out for a better job, all that extra money is burnt with the increased rent. Plus 1/3 part of CPI should be obviously revised. With such drastic home and rent price increases in the last few years, I haven't heard about same salaries growth... Title of this video is painfully truthful - it's all just numbers for the fed, and they can play and manipulate them as they desire.

So critical data the FED counts on for their policy cannot be trusted at all.
No wonder people are so concerned that the FED may not know what they are doing.

Every person who can’t afford a home due to rates becomes a tenant who drives up rents. It means another homeowner who doesn’t want to sell because they locked in a 30 year mortgage at 2.50%. Hard to imagine the fed doesn’t understand that the tool they are using to bring down inflation is making it worse.

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“Owners Equivalent Rent”: absurd idea

If it's people's biggest expense, it doesn't skew the number, it is the number.

I am on flexible rate on my mortgage. Each time they raise the base rate, it inflates away my disposable incomes.

Just increase the sampling times. In Australia were tracking inflation monthly now instead of quarterly to get a better bearing on where were at.

A 2-3% is unrealistic in the short term. Targets need to be 4.5% within the next 2 years.

Shelter category should have been revised a long time ago. Terrible the teams that curtail this rule haven’t addressed this. Inflation has been insight for 2 years.

Rent is up 50% in a yr

Housing is by far my biggest expense and most important thing for inflation.

Please vote Democrat this November and stock values will continue to tank further, making great stock prices available?

Inflation calculations are flawed, right now rising interests rates just means landlords can charge more to recoup losses in capital gains because unemployment is so low, only way to fix inflation is via a recession that causes unemployment unfortunately.

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Housing is not that hard to measure. Measure rents instead of some voluntary number that amounts to garbage. Yes, rents are going up, that happens when you lock landlords down for a couple of years. On the flip side, a lot of Americans don't do what they need to in order to own homes and would rather rent so unfortunately they wind up paying rent for long periods of time, much longer than they should.

This news channel is corrupt....

My opinion, Inflation is another word for GREED. Inflated prices means more 💰💰. When the war in Ukraine started. Everything has gone up. 1st to go up was oil/gas then we know what has happened after that.

The masters of Wall Street have made housing their latest commodity of plunder. When the majority of Americans own nothing there’s little incentive to join the military or to work hard.All the spoils have gone to the 1%.

Make housing a bad investment!!! Housing should be the most volatile investment there is!

Inflation does not have to run on for10 more years. The reduced level of Domestic Oil production, and lack of Gasoline refineries in this country is at the root of the problem. We haven't built refineries in this country for 20 years. That is restricting the supply on gasoline artificially keeping prices high. High oil prices goes into everything; Plastics in cars, furniture, Diesel fuel, jet fuel, farmers fuel, fertilizer, rent, home heating, electric power companies the rely on natural gas. This is a manufactured crisis, and the American people need to protest at the ballot box in November elections, and 2024 elections. Unless are really dumb, you should not be voting for Democrats. To save your standard of living, and future, vote Republican in every office, and school board across the United States. My family voted Democratic for over 50 years, but this Democratic Party is not the same party. It has a lot of control the world globalist. If they don't cheat in the election, we can turn this all around.

CPI numbers have been fluffed for years. If we use the same CPI calculator of the 1950’s now CPI is higher.

So zillow does a better job at checking the market than the government

Rising rent and mortgages is a great way to kill discretionary spending

why housing expensive when there are no one to buy them?