How The BLS (Mis)Measures Housing Inflation: “Hey, Buddy, What Would You Rent Your Castle For If You Moved Into A Tent On The Sidewalk?”

The expenditure weight in the CPI market basket for Owners’ equivalent rent of primary residence (OER)is based on the following question that the Consumer Expenditure Survey asks of consumers who own their primary residence:

“If someone were to rent your home today, how much do you think it would rent for monthly, unfurnished and without utilities?”