Lawler: Is the “Owners’ Equivalent Rent” Index Set to Accelerate Sharply? — Bill McBride

With the focus now on inflation, anything that affects CPI and PPI is significant. It is a lagging indicator.

From Lawler:

While single-family home prices have recently soared and single-family rents appear to have accelerated, the “Owners’ equivalent rent of primary residence” index (OERPR) of the Consumer Price Index has shown no meaningful acceleration.

However, it would appear as if (1) the OERPR is understating this measure of housing costs; and (2) the measure is likely to accelerate, probably significantly, during the remainder of the year.…

Calculated Risk
Lawler: Is the “Owners’ Equivalent Rent” Index Set to Accelerate Sharply?

Bill McBride

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