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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: GraceZ who wrote (81206)7/15/2007 3:05:34 PM
From: JBTFDRead Replies (1) of 306849
 
I think if they wanted to be more accurate with monitoring housing inflation they could use two parts, each weighted proportionately to the weight in the population.

They could have a renters part, which would be something like 30% weighting and would be the same as the now used rental equivalency. Then they should have a housing cost part, which would reflect actual housing prices. This currently would have a weighting of 70% or so: whatever the homeownership rate is.

I think this would more accurately reflect inflation.

I think it is a little disingenuous to pretend that rising housing prices are not inflationary.
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