OECD: How Soaring Home Prices Contribute to Inflation

(13 October 2021) Low interest rates, economic stimulus and high uncertainty over the course of the pandemic boosted consumer demand for new homes as well as home prices around the world. To estimate a potential contribution of soaring home prices to overall inflation, we analyzed home price and housing rent data for 33 economies for which data was available in the Organization for Economic Cooperation and Development (OECD). OECD housing data for 2010-2021 shows that a one percent increase in...