There’s a lot of noise out there about the state of the economy, so I’m breaking down what really matters—especially if you’re buying or selling in Colorado Springs. Here are the key highlights from economist Dr. Marci Rossell’s latest Economic Insights:
🔹 No, the U.S. is not in a recession.
Despite media speculation, key metrics like employment and retail sales remain strong.
🔹 Consumer confidence is declining.
With confidence now at just 50, inflation concerns and higher tariffs are causing many to delay large purchases—like homes.
🔹 Tariffs have surged from 2% to 17%.
This sharp increase has made construction and goods more expensive, affecting both builders and buyers.
🔹 Core inflation is still high—and here’s why that matters.
The Consumer Price Index (CPI) showed a 2.3% inflation rate in April. But when energy is excluded, core inflation hits 2.8%—well above the Federal Reserve's 2% target.
Here’s the catch: that number includes “Owner’s Equivalent Rent” (OER).
💡 What is Owner’s Equivalent Rent (OER)?
OER estimates how much a homeowner would pay to rent their own home. It's a hypothetical cost—not an actual transaction. Yet it makes up nearly one-third of the CPI calculation.
📉 Why this matters:
Including OER inflates inflation data and doesn’t reflect real-time market behavior. Housing costs based on guesswork—not on active rental market rates—distort how inflation is experienced day-to-day. It also masks potential improvements in affordability for buyers.
🔹 Housing starts are up—mostly in multifamily housing—but builders still face costly material delays and labor shortages.
🏘️ In markets like Colorado Springs, real-world housing affordability and inventory are what truly matter—not theoretical numbers. If you're thinking about buying or selling, I can help you cut through the noise and plan your next step with confidence.
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#ColoradoSpringsRealEstate #EconomicUpdate #HousingMarketInsights #TariffsAndInflation #CPIExplained #HomeBuying2025 #NicoleStromRealtor #ColoradoLiving
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About the Author
Nicole Strom
Nicole is a retired military spouse of over 25 years, as well as a full time Real Estate Professional serving her clients in and around Colorado Springs.
You need a REALTOR® with vast experience and knowledge of our specific market. You need a REALTOR® that genuinely cares about you and puts your needs first. You need a REALTOR® you can trust. Nicole is that REALTOR®.
