Mike Spychalski, CAIA
The collapse of the housing market coupled with the massive wave of foreclosures has created an increased demand for rental properties as former homeowners are forced to find new places to live. Given the finite supply of rental properties, some have speculated that the greater demand for rental properties will drive rents higher, thus contributing to elevated inflation (as measured by the Consumer Price Index).
The following article investigates how changes in rents influence inflation figures, most especially in light of the housing market collapse.
The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.
Late last year we authored an article detailing the growing differences between the high yield and leveraged…
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