In a recent FET article, I explained how the rental market adjusts to inflation arising in non-housing goods and services. Find that article here:

The key quote is this:

Another insight from the rental equilibrium is that inflation in non-housing goods means that renter households can pay more for rent because that means giving up fewerother goods and services for an extra quantity or quality of housing. This is the opposite of what many people might expect. Some might think that if goods and services have risen in price then households have less left over for rent, so rents should fall when there is inflation. This is wrong.

In this episode, Jonathan and I discuss the mechanisms at play, whether housing is different and more important than other goods and services, and more.

Enjoy.

—————————

Follow Cameron and Jonathan on X/Twitter. Buy The Great Housing Hijack here.

Please like, comment, share, and subscribe.

Theme music: Happy Swing by Serge Quadrado Music under Creative Commons Licence CC BY-NC 4.0

This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.fresheconomicthinking.com/subscribe