COM - Transitory inflation appears less likely as rents are set to surge - Dallas Fed

Rent inflation and owners' equivalent rent are expected to rise "in the years to come" as home prices continue to ramp amid continued inventory constraints, the Federal Reserve Bank of Dallas reported. The bank forecasts rent inflation to rise from 1.9% in June 2021 to 3.0% at year-end 2022 and to 6.9% at year-end 2023; expects OER inflation to increase from 2.3% in June to 3.8% by year-end 2022 and to 6.9% by end of 2023. If these growth rates were to come to fruition in late 2023, rents and OER would be the highest in more than 30 years. The eleventh federal reserve district notes that house price growth, expressed as a 1-year growth rate, leads rent inflation and OER inflation by somewhat less than two years. This implies that rents have catching up to do, especially as the S&P Case-Shiller U.S. home price Index surged a record 18.6%

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Transitory inflation appears less likely as rents are set to surge - Dallas Fed