IDEAS home Printed from https://ideas.repec.org/a/fip/fedfel/96528.html
   My bibliography  Save this article

Where Is Shelter Inflation Headed?

Author

Listed:
  • Augustus Kmetz
  • Schuyler Louie
  • John Mondragon

Abstract

Shelter inflation has remained high even as other components of inflation have fallen. However, various market indicators, including house prices and rents, suggest that the housing market has slowed significantly with the rise in interest rates. Forecasting models that combine several measures of local shelter and rent inflation can help explain how recent trends might affect the path of future shelter inflation. The models indicate that shelter inflation is likely to slow significantly over the next 18 months, consistent with the evolving effects of interest rate hikes on housing markets.

Suggested Citation

  • Augustus Kmetz & Schuyler Louie & John Mondragon, 2023. "Where Is Shelter Inflation Headed?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, vol. 2023(19), pages 1-6, August.
    • Handle: RePEc:fip:fedfel:96528
    as

    Download full text from publisher

    File URL: https://www.frbsf.org/wp-content/uploads/sites/4/el2023-19.pdf
    File Function: Full text - article PDF
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zheng Liu & Mollie Pepper, 2023. "Can Monetary Policy Tame Rent Inflation?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, vol. 2023(04), pages 1-6, February.
    2. Brian Adams & Lara Loewenstein & Hugh Montag & Randal Verbrugge, 2024. "Disentangling Rent Index Differences: Data, Methods, and Scope," American Economic Review: Insights, American Economic Association, vol. 6(2), pages 230-245, June.
    3. Denis Gorea & Augustus Kmetz & Oleksiy Kryvtsov & Marianna Kudlyak & Mitchell Ochse, 2023. "House Prices Respond Promptly to Monetary Policy Surprises," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, vol. 2023(09), pages 1-5, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christopher D. Cotton, 2024. "A Faster Convergence of Shelter Prices and Market Rent: Implications for Inflation," Current Policy Perspectives 2024-4, Federal Reserve Bank of Boston.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedfel:96528. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Federal Reserve Bank of San Francisco Research Library (email available below). General contact details of provider: https://edirc.repec.org/data/frbsfus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.