Painless Price Rise

Despite the recent rise in house prices and residential shelter costs comprising 32% of the CPI, rising house prices won’t, in the short run, worsen inflation. This is because the CPI does not look at house prices, but rather the cost to rent a dwelling (owner-occupied or rented). And since house prices and rents are generally inversely correlated, we’re safe until rents start rising and with multifamily construction going gangbusters…

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