Red-hot rental market is cooling in a good sign for inflation

The cooling rental market has yet to show up in the federal inflation data because those numbers reflect what renters are paying on their existing leases rather than what landlords are currently charging new tenants, leading to about a 12-month lag in the federal data,. The consumer price index, for instance, showed a 0.8% increase in how much consumers were paying for rent from November to December, while Zillow found a 0.3% drop in asking prices over the same period.

Even before falling rents are factored in, inflation has been showing signs of improving, helped largely by a drop in gas prices. The consumer price indexcompared to the prior month, the largest monthly decline since the start of the pandemic. Prices are still up 6.5% from a year ago, though that's down from 9% in June.

“It takes some confidence in yourself and the economy and your job to go and sign a lease for 12 months or to buy a house,” Tucker said. “These big commitments are a bit of a vote of confidence in how things are going to go for the next 12 months and a lot of data shows people weren’t feeling that confident in the last several months of 2022.”

But not all renters will feel the same level of relief from that building boom. Given the high cost of new construction, the vast majority of new buildings coming on the market will be targeted at the wealthiest renters. That will mean increasing competition among luxury buildings with landlords offering incentives like a month of free rent or gift cards worth hundreds of dollars.

The houses or the dollars are worth less on the local global market? Reminds me of a convicted felon who maybe is not worth the guilt who said a dollar in the prison is worth double outside the prison because of the barrier to exit that is not a discreet concept as in gold money.

Rent is sky high where I am.

Bullshit. My daughters rent in Denver just went up $100

Well yeah. A huge recession will do that

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