18 November 2024
According to a model from the Cleveland Federal Reserve, rent inflation will likely remain high until at least mid-2026. Despite some indicators suggesting new rents are decreasing, the overall consumer price index (CPI) for rent is expected to stay elevated due to reduced turnover in leases. This situation complicates the Federal Reserve’s efforts to communicate about inflation and may hinder their ability to cut interest rates, as rising shelter costs significantly impact inflation metrics.