Families living in rented accommodation suffer least from inflation
The article examines the effect of housing tenure on inflation and real incomes for example households in 2020–2024.
For those living in rented accommodation, inflation is lower than for owner-occupiers, as rents have risen moderately. For those living in owner-occupied housing with a mortgage, inflation is highest, as rising mortgage interest rates significantly increase housing costs from 2022 onwards.
Real incomes remained stable or grew slightly in 2020–2021, but weakened in 2022–2023 as inflation exceeded nominal wage growth. In 2023 in particular, mortgage interest rates explain a large share of inflation. In 2024 the situation turns for the better as net income grows faster than inflation. (AI translation)