Consumer price inflation is easing, sparking hope that the U.S. may be turning the corner on the worst price spikes in decades.
So even as the Biden administration cheers signs that price rises across the economy have started to cool, homeownership remains out of reach for many first-time buyers, who are already facing a severe lack of supply. Housing-driven inflation may also be a key reason President Joe Biden’s approval numbers on the economy have been so low, even though the job market has shown remarkable resilience and fears of an imminent recession have subsided.
“Over the next few months we’re going to see a decline in the shelter component now that rent growth has slowed,” said Rob Dietz, chief economist at the National Association of Home Builders. “I think that’s good news for the overall focus on inflation.”