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 is up 4.2% from January 2025 to February 2025, marking a continued deceleration. Meanwhile, our February Zumper National Rent Index continues to show prolonged annual growth, with the national one-bedroom rent up 2.9% over the same time period. Since our most recent data will likely be reflected in CPI metrics over the coming months, the uptick in annual growth in Zumper’s February national rent index suggests that the Federal Reserve may face greater inflationary challenges in implementing further 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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