Danielle was a guest with Jim Goddard on This Week in Money. You can listen to an audio clip of the segment starting at 33:30 on the play bar here.
The 8.2% year-over-year increase in US shelter costs was the highest housing inflation since 1982; however, home prices and rents are both now decreasing. In March 2023, U.S. Asking Rents saw their first YoY decline since March 2020 (chart below from Redfin courtesy of Charlie Bilellio). Shelter costs comprise the largest share of the overall CPI Index, with a 34% weighting. At a multi-month lag, falling shelter prices will work to push the CPI lower.
Here’s a chart of San Francisco office vacancies I referenced in the interview. Similar trends are evident in most major cities.
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