Abstract
This paper presents new estimates of the inflation rate of the value of owner-occupied housing and the gross rents of renteroccupied housing in 39 large metropolitan areas. The inflation rates are computed via the method of hedonic indexes usingAnnual Housing Survey data for the period April 1974 to March 1976. The estimates are compared to the official rent index published by the Bureau of Labor Statistics and it is argued that the official index understates the rate of inflation for renter-occupied housing. Also, the hedonic estimates are used to determine the pattern of regional differences in inflation as well as differences between the rate of inflation of rents versus values.
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The research underlying this paper was supported in large part by the Office of Policy Development and Research of the U.S. Department of Housing and Urban Development while Dr. Follain was at the Urban Institute.
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Follain, J.R., Malpezzi, S. Estimates of housing inflation for 39 SMSAs: An alternative to the consumer price index. Ann Reg Sci 14, 41–56 (1980). https://doi.org/10.1007/BF01287312
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DOI: https://doi.org/10.1007/BF01287312