Have you ever wondered how exactly inflation impacts the housing market? Not surprisingly, they are connected. Whenever there are changes to one, both are affected. Today is a high-level overview of the connection between the two.
Shelter inflation is the measure of price growth specific to housing. It comes from a survey of renters and homeowners that’s done by the Bureau of Labor Statistics. The survey asks renters how much they’re paying in rent, and homeowners how much they’d rent their homes for, if they weren’t living in them.