The Great Repricing of Housing: Affordability Enters the Fed's Math
Housing costs no longer follow the rest of the inflation basket, and policymakers are starting to notice.
Shelter is the stickiest line item
Rents and home prices move on supply, zoning and demographics — not on central-bank rates alone. Tight housing now feeds wage pressure and restrains labour mobility.
Governments are responding with supply-side fixes: upzoning, fast-track permits and institutional rental markets. Slow, but real.
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Housing costs no longer follow the rest of the inflation basket, and policymakers are starting to notice.
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