Rents Slip Slightly
In April, the Real Rent Index (which adjusts rent changes for overall inflation) slipped for the second month in a row, edging down a tenth of a point from 109.2 to 109.1.

During the month, the component of the Consumer Price Index (CPI) measuring residential rents increased at a seasonally adjusted annual rate of 3.0%, the lowest one-month growth rate for rent since January 2006.

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.

At the same time, the overall CPI  increased  at a seasonally adjusted annual rate of more than 5% (led by an increase in energy prices that, though smaller than in March, still was substantial). That combination drove the Real Rent Index down to its lowest level since October. Over a longer horizon, the index is still relatively close to its all-time high. Scaled to equal 100 in January of 1995, an index number of 109.1 means that rents have risen 9.1 percent faster than prices in general since then. The index broke the 109 level for the first time last November. [ return to top ]