The Federal Reserve Bank of Kansas City has released a report showing higher rent is also keeping the core Consumer Price Index inflation rate high.The data, released earlier this month, show while inflation spiked for goods early in 2021, prices have continued to rise for rent, keeping the core rate higher.“I think that studies like that are good for the context to the real cost to humans’ lives, but what that study doesn’t show is a single mom who comes home from work and has a notice taped on her door that her rent is going up $300 a month because her property is being sold,” Maya Neal, an organizer and leader with KC Tenants, said.Neal lives in midtown Kansas City, Missouri, saying her rent is rising by $100 a month on her next renewal.“I’m thinking that there’s no way that I’m going to stay in a one-bedroom apartment with two other people, my son and my partner, for $900 a month and $300 a month utilities,” Neal said. The Federal Reserve of Kansas City’s report shows the outlook for rent inflation is tied to labor market tightness.“Growth in employment and wages, which vary with broader economic conditions, are key determinants of demand for shelter and hence rent inflation,” the report said. The report also said an increase in remote work and higher costs for building and maintaining rental units led to a boost in home prices, which has also boosted rent inflation.To read the full report, click here.
The Federal Reserve Bank of Kansas City has released a report showing higher rent is also keeping the core Consumer Price Index inflation rate high.
The data, released earlier this month, show while inflation spiked for goods early in 2021, prices have continued to rise for rent, keeping the core rate higher.
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“I think that studies like that are good for the context to the real cost to humans’ lives, but what that study doesn’t show is a single mom who comes home from work and has a notice taped on her door that her rent is going up $300 a month because her property is being sold,” Maya Neal, an organizer and leader with KC Tenants, said.
Neal lives in midtown Kansas City, Missouri, saying her rent is rising by $100 a month on her next renewal.
“I’m thinking that there’s no way that I’m going to stay in a one-bedroom apartment with two other people, my son and my partner, for $900 a month and $300 a month utilities,” Neal said.
The Federal Reserve of Kansas City’s report shows the outlook for rent inflation is tied to labor market tightness.
“Growth in employment and wages, which vary with broader economic conditions, are key determinants of demand for shelter and hence rent inflation,” the report said.
The report also said an increase in remote work and higher costs for building and maintaining rental units led to a boost in home prices, which has also boosted rent inflation.
To read the full report, click here.