Wells: Analyzing the trends shaping residential real

While American consumers are embracing freedom from post-COVID restriction, there are mounting concerns that inflation might take the wind out of the sails of consumer spending in 2022. What’s the impact on residential real estate?

Here is a closer look at what we see happening in the housing market:

Inflation

Rents have become a primary source of inflationary pressure, as evidenced by the Consumer Price Index (CPI). According to a recent CNBC article, rents are up 10.2%, accounting for about one-third of the latest CPI report. And these pressures will likely persist into 2023, as rent hikes have still not taken effect for…