BLS has released Q4 data for its experimental "New Tenant Rent Index." Shows a *big* drop in rents for new leases in late 2023. But notable that the "all tenant" index, which follows a similar methodology but includes ongoing leases, is closer to the CPI's rent measure. #EconSky#NumbersDay
Remember, the BLS's rent measure lags market rents for two reasons. One is that each housing unit is only directly measured every six months -- a literal lag in the data.
The other is conceptual: CPI tries to measure shelter costs for everyone, not just people who sign new leases. The "all tenant" index should, in theory, help with the first issue while still maintaining the conceptual approach in CPI.
Also worth noting that the most recent observation is very noisy and subject to large revisions. So don't read *too* much into that big drop.
Full data: www.bls.gov/pir/new-tena...
