Real Rents Still Near All-Time High
 In April, as in March, the Real Rent Index advanced primarily on weakness in the overall U.S. economy. While the residential rent component of the Consumer Price Index (CPI) increased at what would normally be a relatively modest (seasonally adjusted annual) rate of 2.1%, this occurred against a backdrop of an overall CPI that declined for the second month in a row.

The latest decline in the CPI  is small enough to show up only in the CPI reported to two decimal places: 212.67 vs. 212.71 in March. Among the eight major components of the CPI, prices for food and beverages, housing (which includes the costs of utilities, appliances, and furnishings), apparel, transportation, and recreation all declined.

Broad-based consumer price declines such as this are consistent with the weak consumer spending reported recently in the nation's Gross Domestic Product accounts. The April changes pushed the Real Rent  Index (which adjusts rents for inflation or deflation) to a new record high of 112.8. 

Based on seasonally adjusted Consumer 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 ]