Journal Article
Will Rising Rents Push Up Future Inflation?
Lansing, Kevin J.; Oliveira, Luiz E.; Shapiro, Adam Hale (2022-02-14)
Rising rents account for a significant portion of recent inflation. Estimates of how rent inflation typically responds to two leading indicators—current asking rents and current house prices—can help forecast the path of overall inflation for the next two years. This method predicts that higher rent inflation could add about 0.5 percentage point to personal consumption expenditures price inflation for both 2022 and 2023. These potential additions are important in light of the Federal Reserve’s 2% inflation target.
FRBSF Economic Letter , Volume 2022 , Issue 03 , Pages 05

Journal Article
Home Prices Are Overvalued but Will Decline Only Gradually
Rappaport, Jordan (2023-02-17)
The surge in home prices since the start of the pandemic and the sharp increase in interest rates during 2022 have made purchasing a home much less affordable. Homeownership costs relative to rents suggest home prices are considerably overvalued. However, relief is unlikely in the near future: owners have an incentive to remain in their current homes until rates decrease, mitigating downward pressure on prices.
Economic Bulletin , Issue February 17, 2023 , Pages 4