Why Rent Inflation Is Sticky Despite Cooling Home Prices

Home prices are cooling across the US, but rent inflation remains stubbornly high. Lucas and Luna unpack why the two markets have decoupled, using May 2026 CPI data showing shelter costs up 5.2% year-over-year despite a 3% drop in median home prices. They trace the lag effect in official inflation baskets, the role of multifamily construction booms in Sun Belt cities, and what this means for the Fed's core PCE target. Plus: the VIX dropping below 17 while rent pressures linger — a signal that markets expect the Fed to look through shelter inflation. #RentInflation #ShelterCosts #CPI #CorePCE #HousingMarket #FedPolicy #InflationLag #MultifamilyConstruction #SunBelt #HomePrices #Economics #FexingoBusiness #BusinessPodcast #EconomicForecast #LaborMarket #MonetaryPolicy #InflationBasket #May2026 Keep every episode free: buymeacoffee.com/fexingo