Here's why housing inflation is still stubbornly high
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Housing inflation remains high despite overall inflation in the U.S. economy declining. The shelter inflation index, which accounts for 36% of the consumer price index (CPI), is the main factor keeping the CPI from falling back to policymakers' target. The slow decline of housing inflation is due to the way the Bureau of Labor Statistics constructs its housing inflation index. The index lags behind trends in the real-time rental market, causing a delay in reflecting changes in rental prices. The shelter inflation index includes rent and 'owners' equivalent rent of residences' to measure the average cost of housing. The index moves slowly and with a lag due to the staggered nature of the data collection. Experts expect shelter inflation to continue to moderate as it catches up to the trend in new rental contracts and as more rental units become available.

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https://www.cnbc.com/2024/07/11/heres-why-housing-inflation-is-still-stubbornly-high.html