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0 pointshammock4y ago0 comments

Housing is not in CPI. They use "owners' equivalent rent" which is a subjective (cooked) metric.

0 comments

Well, it’s based on a survey. (And surveys are cursed instruments [1].)

> Generally, owners' equivalent rent is obtained through surveys asking homeowners the following question: "If someone were to rent your home today, how much do you think it would rent for monthly, unfurnished and without utilities?" [2]

I would guess that some owners’ ideas of what their house would rent for might lag the market?

[1] https://carcinisation.com/2020/12/11/survey-chicken/

[2] https://www.investopedia.com/terms/o/owners-equivalent-rent....

yokem554y ago

So what housing cost metric should be looked at? The cost for a retiree living in their paid off home? The mortgage payment for brand new homeowner with minimal down? The cost to split an apartment for 2 people? What objective measure should be used?

human4y ago

CPI will never been perfect. They could even break it down into 3 categories: 1. Poor man’s CPI: ramen, rent & public transit 2. Middle class’s CPI: house, beef & cars 3. Rich man’s CPI: penthouse, luxury goods & sports teams

asdff4y ago

All of them? The government has this data already it just needs to be aggregated by someone motivated.

gruez4y ago

How do you combine them into one number, in a way that isn't "cooked"? Proposing we mash up all data ever into one figure, without detailing how, is useless

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