Real Rents Index Revised for the New Year
In January, as is typically the case at the start of a new year, the history of NAHB's real rent index series was revised slightly. The revision occurs because the index is based on two seasonally adjusted components of the Consumer Price Index —the overall CPI, and the CPI component for rent of primary residences. In January, the Bureau of Labor Statistics computed new seasonal factors and revised these series back to 2003, automatically triggering revisions to the NAHB series over the same period.

Despite the revisions, the pattern of recent trends in the real rent index did not change noticeably. The graph still shows the index climbing to an all-time high at the end of 2008 (driven primarily by a weak overall economy and declining energy prices), and the all-time high is within a tenth of a point of the unrevised number reported last month. In January, the real rent index was little changed, as rents increased at an annual rate of 4% and the overall CPI increased at a pace that was only slightly slower. 

Based on seasonally adjusted Consuner Price Indices; U.S Department of Labor, Bureau of Labor Statistics.The annual rates indicate what the percentage change would be if the current monthly rate were sustained over a 12-month period. The real rent index is the CPI for rent of primary residence divided by the CPI for all items and scaled so that January 1995 is 100.  [ return to top ]