Reported about 1 month ago
The Cleveland Federal Reserve warns that rent inflation is expected to stay above pre-pandemic levels of around 3.5% until mid-2026, primarily due to a significant gap between new and existing rental prices. This persistent rent pressure poses challenges for the Fed's efforts to bring overall inflation down to the target rate of 2%, complicating the monetary policy normalization process. Despite some signs of slowing rent growth, analysts emphasize that substantial potential for rent inflation remains, particularly affecting ongoing leases.
Source: YAHOO