Housing inflation will surge roughly 7% in 2022, according to new research by Larry Summers

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Housing inflation will surge roughly 7% in 2022, according to new research by Larry Summers
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Former Treasury Secretary Larry Summers projects that residential inflation will keep overall inflation high this year in a new working paper he co-authored.

Hopes that high inflation will be short-lived may be quashed by the recent run-up in home prices and rents.

As the researchers note, housing inflation only amounted to around 4% for the 12 months ending in January. Comparatively, Zillow ZG reported that home values had risen by nearly 20% over that same period of time, while rents had increased by nearly 15%. Plus, the different groups of consumers that the federal government surveys are only periodically asked about their housing expenses — meaning that it takes time for these price changes to be baked into the inflation measures.

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