Real Rents
In November, real rents as measured by the Consumer Price Index (CPI) continued to signal strength in the market for rental apartments while other demand indicators (particularly vacancy and absorption rates) remained weak. During the month, the CPI's residential rent component grew at a healthy seasonally adjusted annual rate of 4.3%, while the overall CPI grew by only 1.3%. 

Perhaps surprisingly, given the political uncertainties surrounding some oil producing countries, energy prices were well-behaved and actually declined in November. That helped hold inflation to 1.3%, one of 2002's smallest month-to-month increases. For residential rents, on the other hand, 4.3% represented one of the year's largest increases. The combination drove the real rent index up from 107.0 to 107.3. As currently constructed, the index extends back to 1981, and 107.3 is the highest it's ever been during that time.

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