Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
This article claims lags in official reporting of rent inflation has temporarily caused the official inflation rate to be understated. Inflation will ramp up as the official stats catch up to the more current rent inflation rates from other sources.
Shelter accounts for a third of the US government’s Consumer Price Index, but the official numbers have lagged far behind private-sector surveys. Lagged data reporting means that today’s observed price increases will ratchet into faster CPI inflation months from now, putting more pressure on the US Federal Reserve to tighten credit.
The CPI Shelter inflation rate can lag the Zillow rent inflation rate by up to eight months.
This article claims lags in official reporting of rent inflation has temporarily caused the official inflation rate to be understated. Inflation will ramp up as the official stats catch up to the more current rent inflation rates from other sources.
The CPI Shelter inflation rate can lag the Zillow rent inflation rate by up to eight months.
What's causing inflation is a multifaceted problem:
1. Landlords are being hit for higher property taxes to make up their state/county/city/municipal budget shortfalls due to shutdowns/lockdowns.
2. AirBNB has destroyed the rental market.
3. There have been too many flippers in the market thanks to those TV shows promising flippers can get rich quick.
4. Gentrification in every 2nd and 3rd tier city. Just look at the SE alone - some houses are equal to what you'd find in LA, Chicago, NYC.
5. Overbuilding has destroyed the rental market.
6. Redlining in black areas in major cities have destroyed the rental market, and then see #2 and #4.
7. Rental rules in most 1st, 2nd, 3rd tier cities are asinine (asking for a full background check, credit check, making 5x the rent, first, last, and security, references, and paying application fee, administration fee, background check fee, credit check fee is breaking the bank on the gig economy) and are discouraging lower class workers from having a place to live.
8. People can't afford to buy houses with 75 year mortgages that are overvalued in less than stellar neighborhoods.
9. Banks (at least where I live) won't let you pay for a house in cash and still want you to go through most of what I listed in #7.
10. Reverse Mortgauges have destroyed generational wealth.
What's causing inflation is a multifaceted problem:
1. Landlords are being hit for higher property taxes to make up their state/county/city/municipal budget shortfalls due to shutdowns/lockdowns.
2. AirBNB has destroyed the rental market.
3. There have been too many flippers in the market thanks to those TV shows promising flippers can get rich quick.
4. Gentrification in every 2nd and 3rd tier city. Just look at the SE alone - some houses are equal to what you'd find in LA, Chicago, NYC.
5. Overbuilding has destroyed the rental market.
6. Redlining in black areas in major cities have destroyed the rental market, and then see #2 and #4.
7. Rental rules in most 1st, 2nd, 3rd tier cities are asinine (asking for a full background check, credit check, making 5x the rent, first, last, and security, references, and paying application fee, administration fee, background check fee, credit check fee is breaking the bank on the gig economy) and are discouraging lower class workers from having a place to live.
8. People can't afford to buy houses with 75 year mortgages that are overvalued in less than stellar neighborhoods.
9. Banks (at least where I live) won't let you pay for a house in cash and still want you to go through most of what I listed in #7.
10. Reverse Mortgauges have destroyed generational wealth.
Most of that is fairly wild overstatement.....but redlining, come on.
What's causing inflation is a multifaceted problem:
1. Landlords are being hit for higher property taxes to make up their state/county/city/municipal budget shortfalls due to shutdowns/lockdowns.
2. AirBNB has destroyed the rental market.
3. There have been too many flippers in the market thanks to those TV shows promising flippers can get rich quick.
4. Gentrification in every 2nd and 3rd tier city. Just look at the SE alone - some houses are equal to what you'd find in LA, Chicago, NYC.
5. Overbuilding has destroyed the rental market.
6. Redlining in black areas in major cities have destroyed the rental market, and then see #2 and #4.
7. Rental rules in most 1st, 2nd, 3rd tier cities are asinine (asking for a full background check, credit check, making 5x the rent, first, last, and security, references, and paying application fee, administration fee, background check fee, credit check fee is breaking the bank on the gig economy) and are discouraging lower class workers from having a place to live.
8. People can't afford to buy houses with 75 year mortgages that are overvalued in less than stellar neighborhoods.
9. Banks (at least where I live) won't let you pay for a house in cash and still want you to go through most of what I listed in #7.
10. Reverse Mortgauges have destroyed generational wealth.
That's what Kevin Philips, former strategist for Richard Nixon basically also stated not only in regards to inflation but also unemployment and economic growth as well:
Instead, since the 1960s, Washington has been forced to gull its citizens and creditors by debasing official statistics: the vital instruments with which the vigor and muscle of the American economy are measured. The effect, over the past twenty-five years, has been to create a false sense of economic achievement and rectitude, allowing us to maintain artificially low interest rates, massive government borrowing, and a dangerous reliance on mortgage and financial debt even as real economic growth has been slower than claimed.
It would behoove some of you guys to take a couple of hours and investigate why these various statistical adjustments have been made to GDP, inflation, UE etc. over time.
Just a little real understanding relegates loud mouths like Williams to the rubbish pile.
That's what Kevin Philips, former strategist for Richard Nixon basically also stated not only in regards to inflation but also unemployment and economic growth as well:
It would behoove some of you guys to take a couple of hours and investigate why these various statistical adjustments have been made to GDP, inflation, UE etc. over time.
Just a little real understanding relegates loud mouths like Williams to the rubbish pile.
Exactly. The knee-jerk reaction that change to any methodology must have nefarious motivations is so pervasive among some posters here, they just swallow whatever oversimplified one-sided take the latest ZeroHedge article has thrown their way and call it a day.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
