Inflation eases but Fed can’t conquer housing prices
As the Biden administration cheers signs that price rises across the economy have started to cool, homeownership remains out of reach for many first-time buyers.
By Kathy O’Donnel and Sam Sutton
Consumer price inflation is easing, sparking hope that the U.S. may be turning the corner on the worst price spikes in decades. Yet the single biggest component of the Consumer Price Index — housing costs — continues to be the main driver of inflation, rising twice as fast as everything else…“For younger voters, who are seeking to move out of rentals or to find an affordable first home close to work, that can be close to impossible minus a down payment from a wealthier parent,” said Karen Petrou, co-founder and managing partner of Washington-based consulting firm Federal Financial Analytics. “This is one of the really classic aspects of American economic inequality,” she said. “People are squeezed.”