In those specific locations, it would seem that the increases would dwarf wage gains. In places with rent control/stabilization, like San Francisco and Berkeley, the impact would be far more muted. A lot of the alarmist stories about SF real estate over the years ignores that most rental units are covered by rent control which protects tenants from large price increases. In SF the allowable rate for increase was 0.7% last year and 2.3% this year. I don't think that a 3% total rent increase over a 2 year period would dwarf wage gains.DiabloWags said:Unit2Sucks said:Why would you use CPI instead of PCE, which I believe you've argued is a better measure? PCE is 6.6%, still high but significantly lower than CPI.DiabloWags said:Unit2Sucks said:
Sounds like the stimulus may have created a durable wage and lifestyle improvement for labor in this country.
Sadly, surging inflation and a CPI now at 8.5% have crushed all of these wage gains.
Food, fuel, and rents have decimated the hourly worker.
According to RedFin, rents in the US jumped 14% in December 2021 to $1,877a month, the largest rise in more than two years. Austin, Texas had a 40% increase. NYC had a 35% increase. Several metro areas in Florida exceeded 30% rent increases.
I would suggest that these rent increases have dwarfed any wage gains.
Also lol to a statement that mentioned that something in December 2021 was the largest in more than 2 years. We all know what happened in the 2 preceding years.
I guess I understand your point is that PCE doesn't capture everything and you believe these other uncovered categories are crushing hourly workers. Do you think that these more volatile categories (which is why PCE excludes food and fuel) are not seeing temporary inflation and that PCE is the wrong tool for the situation we are in?
