Feb. 23, 2023
January CPI Update
Rent of primary residences rose 8.6% from January 2022 to January 2023, a slight increase from the 8.4% seen from December 2021 to December 2022.
Diving Deeper: These recent data is in contrast to the 3.6% year-over-year rent growth reported by CoStar and 5.5% year-over-year rent growth reported by Yardi. Yardi and CoStar, as well as multiple other data providers have been reporting declining rent growth for several months, whereas the CPI is heading in a different direction. These data providers, however, provide data on new leases or renewal leases when they report rent growth trends, which is very different than the CPI.
Industry Implications: It will be important to pay attention to industry data sources for current market conditions to benchmark property performance. It is likely that individual property performance will differ substantially from headline numbers related to CPI, which could lead industry professionals to overestimate or underestimate rent performance.