Housing Costs Stay High but Signs of Cooling Emerge
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Housing costs continued rising in November, remaining a major contributor to inflation. Shelter prices rose 0.4% monthly and 6.5% annually.
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Owner's equivalent rent rose 0.5% in November, signaling housing inflation is still persistent. Rents were unchanged from October.
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Housing inflation is expected to moderate in 2023 as rental supply increases and home price growth slows. This could bring some relief.
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Apartment rents are cooling as more units come online, giving landlords less leverage to hike rents. Vacancy rates are rising.
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Home prices keep hitting new highs, up 3.9% annually in September. But price appreciation is forecast to decelerate over the next two years.