Rising rents or rising prices are not proof of inflation anymore than wet sidewalks cause rain. They even admit as much citing...And since there is an unprecedented demand for rental units across the US (as the "owning" alternative has become inaccessible), the median asking rent not only soared at an annual rate of over 6%, it has never been higher, with the Census Department recently reporting that the Median US asking just hit an all time high $803. I think the reason the Fed is holding off on raising rates is due to the absence of wage growth. You really can't have true inflation without an increase in buying power. Prices can and do go up for many reasons: scarcity; an increase in real demand, etc...Every increase in prices isn't due only to inflation.
He lives a couple blocks from CPW. Of course it's a joke, but it's Manhattan. Would $500 for a 5x10' seem ridiculous? Sure, but you can't rent decent trading space for that price. My dorm room was not much bigger.
The fed can keep on holding off on raising rates if their excuse is the absence of wage growth...but also think if there is 0 Wage growth in our economy and the US economy is dependent on consumer spending then were is growth going to come from???
From asset appreciation from people investing in "things". Like ummm real estate. And many of those people are people from other countries which is a double bang for the buck for the U.S.
I hate studying the real estate market...I find it relatively tame and boring and more importantly...not liquid. The markets are sexier.