Explaining Rent Inflation

The delayed effects of changes in rent costs make rent inflation a difficult figure to pin down.

1 minute read

August 19, 2022, 7:00 AM PDT

By Diana Ionescu @aworkoffiction


For Rent

dc_slim / Shutterstock

Despite the purported “housing recession,” writes Derek Thompson in The Atlantic, “rents are at an all-time high—and official rent inflation is still surging.” According to Jeff Tucker, senior economist at Zillow, their annual rent growth index hit 17 percent this year. “Rents have blown up in many of the same metropolitan areas where housing costs have risen, such as Charlotte, North Carolina; Atlanta; Austin, Texas; and Salt Lake City.”

As Thompson notes, “we’re likely to see official rent inflation continue to rise many months after private markets, such as Zillow, suggest that the worst of it is over.” Thompson explains why demand surged so much in recent years, as well as the “slightly wonkier mystery” of what is actually happening to rent inflation. Changes in rent prices take several months to be reflected in national data, largely because “At any given time, the majority of tenants surveyed by the government are paying rent at a price locked in earlier.”

“The annual inflation rate for new rental listings has almost certainly peaked. But the official CPI [Consumer Price Index] rent-inflation rate is almost certainly going to keep going up for another quarter or more.” In other words, even though rent inflation will likely continue to be a talking point, it may have already reached its highest point.

Thursday, August 18, 2022 in The Atlantic

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight