A Note from the Founder 6.16.2025

Zachary Urow August 12, 2025

Inflation Eases Slightly in May

  • Consumer prices rose 0.1% in May on a seasonally adjusted basis, a slight deceleration from April’s 0.2% increase.
  • The annual inflation rate reached 2.4%, while core inflation, which excludes food and energy, rose 2.8% year-over-year.
  • Shelter costs, which rose 0.3% in May, remain the primary contributor to price increases, while energy prices declined 1.0% during the month.

Street Rates Improve in Spring

  • Yardi Matrix reports national average advertised rents at $16.66 per square foot, a 0.7% increase month-over-month.
  • Same-store advertised rents increased month-over-month in 27 of the top 30 metros tracked by Yardi.
  • Los Angeles leads all major markets with a 2.4% increase, followed by Boston at 1.9%, and New York at 1.2%.

Our Thoughts

  • The May CPI reading offers modest reassurance for markets, but core inflation remains sticky. The Fed is likely to stay cautious on rate cuts until core figures move lower.
  • The increase in advertised rents reflects typical spring seasonality, but market performance remains dependent on how demand holds through summer months.