The BLS's experimental "new tenant rent index" fell again in early 2024, posting the smallest four-quarter increase (+0.4%) since 2010
But the "all tenant" rent index held steady in Q1, rising 5.4%, the same as Q4
But the "all tenant" rent index held steady in Q1, rising 5.4%, the same as Q4
Fed officials including Jay Powell have pointed to much-anticipated, further housing disinflation—including the way new-lease rents lead market rents—as a key reason they expect inflation to continue moderating this year.
"That absolutely plays a role in our thinking."
"That absolutely plays a role in our thinking."
The new rent index also has a notably wide margin of error right now.
Here's how @AustanGoolsbee put it last week: If market rents don't return to where they were before the pandemic "we will have a hard time getting...back to target."
Here's how @AustanGoolsbee put it last week: If market rents don't return to where they were before the pandemic "we will have a hard time getting...back to target."
Final point: The initially reported decline of -5% in the new rent tenant index for the four quarters ending Q4 2023 was revised to a gain of +0.8% for that period in the series reported today
h/t @jjj_groen
h/t @jjj_groen
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