INFLATION IRRELEVANCE
10/07/2025 |
The Case-Shiller home price index slid for the fifth straight month, and the Y-o-Y increase is just 1.7%. A year ago, it was 5%. Moreover, real home prices have been declining as inflation exceeds 2.5%. Critically, owner-occupied housing is an almost $50 trillion asset on household balance sheets. Rents are also falling. With residential real estate a huge portion of the CPI/PCE, inflation, even with tariffs, will be quite subdued.