Saturday , May 10 2025
Home / Mike Norman Economics / Lawler: Is the “Owners’ Equivalent Rent” Index Set to Accelerate Sharply? — Bill McBride

Lawler: Is the “Owners’ Equivalent Rent” Index Set to Accelerate Sharply? — Bill McBride

Summary:
With the focus now on inflation, anything that affects CPI and PPI is significant. It is a lagging indicator.From Lawler:While single-family home prices have recently soared and single-family rents appear to have accelerated, the “Owners’ equivalent rent of primary residence” index (OERPR) of the Consumer Price Index has shown no meaningful acceleration. However, it would appear as if (1) the OERPR is understating this measure of housing costs; and (2) the measure is likely to accelerate, probably significantly, during the remainder of the year.…Calculated RiskLawler: Is the “Owners’ Equivalent Rent” Index Set to Accelerate Sharply?Bill McBrideAlso at CRFOMC Minutes: Concern about "supply chain bottlenecks and input shortages"

Topics:
Mike Norman considers the following as important:

This could be interesting, too:

Robert Vienneau writes Austrian Capital Theory And Triple-Switching In The Corn-Tractor Model

Mike Norman writes The Accursed Tariffs — NeilW

Mike Norman writes IRS has agreed to share migrants’ tax information with ICE

Mike Norman writes Trump’s “Liberation Day”: Another PR Gag, or Global Reorientation Turning Point? — Simplicius

With the focus now on inflation, anything that affects CPI and PPI is significant. It is a lagging indicator.

From Lawler:
While single-family home prices have recently soared and single-family rents appear to have accelerated, the “Owners’ equivalent rent of primary residence” index (OERPR) of the Consumer Price Index has shown no meaningful acceleration.

However, it would appear as if (1) the OERPR is understating this measure of housing costs; and (2) the measure is likely to accelerate, probably significantly, during the remainder of the year.…

Calculated Risk
Lawler: Is the “Owners’ Equivalent Rent” Index Set to Accelerate Sharply?
Bill McBride

Also at CR

FOMC Minutes: Concern about "supply chain bottlenecks and input shortages"

Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

Leave a Reply

Your email address will not be published. Required fields are marked *