Is rental inflation measured accurately?
Doubtless, rents in many regions went up when new agreements were
concluded in recent years. For years or even decades, numerous households
have not changed domicile, though. In many cities, there are hence strong
divergences between the rents existing tenants have to pay and market rents,
which is why rental inflation is much lower than the rapidly rising rents for re-let
homes.
To check the plausibility of official rental inflation as reflected in the
consumer price statistics in recent years, we use the following method to
calculate rental inflation: For every new year, agreements are broken down into
new contracts and those for existing tenants. Subsequently, the new contracts
are divided into the 126 cities and towns (riwis universe), for which there is
detailed information on rents for re-let homes, and the rest of Germany.
EU Forecast
euf:ba.18.j:194/nws-01