The Most Splendid Housing Bubbles in America: “House-Price Inflation” in all its Glory. March Update | Wolf Street

House prices rose by 11.2% from a year ago, the biggest increase since the peak of Housing Bubble 1 in 2006, according to today’s National Case-Shiller Home Price Index for January.

So you know what’s going on here: the costs of homeownership are surging, but only a portion are included in our inflation measures, turning CPI as an estimate of the loss of the purchasing power of the dollar into a sad joke.

The Most Splendid Housing Bubbles in America: “House-Price Inflation” in all its Glory. March Update | Wolf Street