Zumper’s rent data provides insights to where the Consumer Price Index (CPI) is heading
Produced monthly by the The Bureau of Labor Statistics (BLS), the Consumer Price Index (CPI) is a measure of the average change overtime in the prices paid by urban consumers for goods and services, including rent. Since the Cost of Shelter CPI uses existing paid rents, among other data points, as part of its calculation, there is a lagging nature to the CPI’s shelter cost component. Zumper’s data, however, serves as a leading indicator of shelter cost as we measure true market rents.
The most recent CPI data revealed that, on an annual basis, the shelter index rose 3.9% year-over-year from May 2024 to May 2025, slightly decelerating from the April. Similarly, Zumper’s May National Rent Index reported a 1.1% year-over-year increase in median one-bedroom rent, also down from the previous month. As asking rents continue to level off, that trend is gradually being reflected in the CPI’s shelter component and the continued cooling in both measures suggests easing inflationary pressure, potentially giving the Federal Reserve more room to consider rate cuts in the near future.
As of March 19th 2025, the Federal Reserve has decided to keep interest rates steady again for the second straight meeting.
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