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By Staff Reporters
DEFINITION
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CPI does not measure changes in shelter costs by looking at home prices, but by measuring the amount of rent that could be paid to substitute a currently owned house for an equivalent rental property.
Owners’ equivalent rent (OER) is a dollar amount that is published by the U.S. Bureau of Labor Statistics to measure the change in implicit rent, which is the amount a homeowner would pay to rent or would earn from renting his or her home in a competitive market.
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Filed under: "Ask-an-Advisor", Financial Planning, Funding Basics, Glossary Terms, Investing | Tagged: CPI, OER, own, own homes, owner's equivalent price, Owner's Equivalent Rent, owner's price, rent home, rent home versus own home, USBLS |
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