logoalt Hacker News

VirusNewbielast Tuesday at 1:49 AM1 replyview on HN

Housing has a massive lag when it comes to CPI.

CPI works by asking how much people pay for rent. If home prices raise 20% in one year (not at all unreasonable in various times in the last ten years), it takes a long time for that to be reflected as many people have their rents fixed, some people have rent control, some landlords will only raise rents on new tenants, etc.


Replies

gruezlast Tuesday at 2:41 AM

>Housing has a massive lag when it comes to CPI.

>[...] many people have their rents fixed, some people have rent control, some landlords will only raise rents on new tenants, etc.

In other words, rent is lagged when it comes to the CPI... because the rent people actually pay is also lagged?

show 1 reply