Rents are starting to roll over in parts of the country that were near the epicenter of the COVID-era home-price boom.
Why it matters: Costs of shelter are currently key drivers of inflation.
In December 2022, rents were 8% higher nationally than they were the same month in 2021, according to the latest Consumer Price Index, released Thursday.
Yes, but: Because of the way rents are measured in the government's CPI report, it can take as long as a year for the latest dynamics in the rental market to show up in official inflation readings.
The bottom line: Nevertheless, those shifts are becoming increasingly clear, especially in red-hot Sunbelt real estate markets such as Florida, Arizona and Texas.
Data from Realtor.com shows rents there are already falling. And that means downward pressure on the key inflation driver of the moment — housing — is already in the pipeline.