Ep. 7: Rents and Sensibility

The biggest weight in most inflation baskets is the cost of shelter. Its weight also implies its importance, since measuring shelter wrong means you're measuring inflation wrong! In this episode of Sense and Sensibility, the Inflation Guy explains why "Primary Rents" doesn't rise as rapidly as the change in asking rents, and why "Owner's Equivalent Rent" is a concept that makes sense - and is a very necessary concept for measuring shelter inflation of owner-occupied housing.