Residential Rent Index for Detroit-Warren-Dearborn CBSA

What is it and why does it matter?

Taking data from the Consumer Price Index's Rent of Primary Residence, this measure tracks the cost of shelter for renter-occupied housing units. It includes the payment for all services provided by the landlord, such as utilities and furnishings. Government subsidies paid to the landlord are included as well. It is important to note, that there is sometimes a lag between market rental rates and consumer rental payments. For example, the market rent may change while a tenant is locked into their lease. Therefore, the tenant does not experience large increases/decreases in rents for many months, leading the index to change later than the market. The default view shows the 12-month percent change, but the index values are available too. Data for the Detroit-Warren-Dearborn CBSA are available on a bi-monthly basis and the observation is repeated in the month not published. Almost 30% of Southeast Michigan's housing units are rented, thus, having trends for the rental market provides data to help formulate housing policies.