Whether you’re looking to rent or buy a home, one thing is true: It’s gotten a lot more expensive.
The latest edition of the Consumer Price Index found that the pace of inflation has hit a 31-year record high, with the index increasing 0.9% in October. Housing costs are one of the main drivers of the rising cost of living in America.
The shelter sub-index increased by 0.5% last month, accounting for roughly a one-fifth of the broader index’s rise. That is in part a reflection of how the index is weighted, since housing-related costs typically consume much of a household’s budget.
Notably, the government does use somewhat unusual methods to gauge inflation in housing, and the consumer price index can be slow to pick up on rising home prices and rents as a result. Nevertheless, myriad other reports have pointed to the cost of shelter rising in recent years, and especially during the COVID-19 crisis.