The Economy & the Fed

Shelter

The housing part of the Consumer Price Index, and its single largest piece. It covers rent for people who rent and, for homeowners, “owners’ equivalent rent” — an estimate of what they would pay to rent their own home, since buying a house is treated as an investment rather than a consumer purchase. Shelter moves slowly because most leases reset only once a year, so it reflects changes in market rents with a delay of about a year. That lag is why shelter can keep inflation elevated even after rents for new leases have cooled.

Educational information, not investment advice. See it applied across the screener →