Rents Make Minimal Changes
According to data from the Consumer Price Index (CPI) , the situation for residential rents remained relatively stable in July. Although the seasonally adjusted CPI component that measures residential rents actually fell for the first time in more than fifteen years, the decline was very small–only four-tenths of one percent, even when compounded to an annual rate.  

This small change in rents was combined with an even smaller change in the overall CPI, which resulted in a real rent index (constructed by comparing changes in rents to  overall inflation) that remained constant to four digits in July. 

The overall CPI also remained unchanged to four digits, as a small decline in food and energy prices was almost  perfectly offset by an increase in prices for other items. Although relatively high by historical standards, the real rent index of 112.1 posted in June and July was lower than it had been during the previous three months. Over the past year, the index has often been pushed up by declining energy prices. 

 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. [ return to top ]