The data for the below charts can be downloaded here:
Notes on Index
The Penn State/ACY Alternative Inflation Index is constructed by replacing the rental price of both tenant- and owner-occupied housing with our new Marginal Rent Index (MRI) introduced by Ambrose, Coulson, and Yoshida (2022). Housing rents exhibit large relative importance ranging from 16% to 42% depending on inflation measures. The MRI is an extension of a quarterly Repeat Rent Index (RRI) introduced by Ambrose, Coulson, and Yoshida (2015). The monthly MRI is based on our new Net Rent Index (NRI), a quality-adjusted net rent measure calculated by multiplying the Real Capital Analytics (RCA) Commercial Property Price Index (CPPI) by the average RCA capitalization (or cap) rates for apartments. The NRI represents so-called net operating incomes (NOI) for apartment investors. NOI equals gross rental income less property-level operating expenses such as property management costs, property taxes, and maintenance costs. The advantages of the NRI are that it is a forward-looking net rent measure, is based on arm’s length market transactions, is based on a repeat-sale index, comprises a consistent rent type (net rent), and is updated monthly. The NRI is converted to the MRI by mimicking the Repeat Rent Index (RRI).
Any data, information, analysis and conclusions drawn therefrom relating to the Penn State/ACY Alternative Inflation Index (“Index Data”) is intended solely for research, education, and non-commercial purposes. Index Data is provided here without representation or warranty of any kind, including but not limited to merchantability, non-infringement of third party intellectual property rights, or fitness for a particular purpose. The Pennsylvania State University has no obligation to provide updates to the Index Data, make the Index Data available, or maintain the Index Data and depictions thereof on this webpage or in any other form. The Pennsylvania State University, its trustees, officers, employees, and agents shall not be liable for any use, distribution, or reliance upon the Index Data for any purpose. If you are interested in licensing the Penn State/ACY Alternative Inflation Index for commercial purposes, please contact Penn State’s Office of Technology Management at otminfo@psu.edu.
The Penn State/ACY Indexes are calculated solely by Penn State and include certain MSCI Real Estate data. Although Penn State information providers, including without limitation, MSCI Real Estate and its affiliates, obtain information from sources it considers reliable, MSCI Real Estate does not warrant or guarantee the originality, accuracy and/or completeness of any data herein. MSCI Real Estate makes no express or implied warranties of any kind, and MSCI Real Estate hereby expressly disclaims all warranties of merchantability and fitness for a particular purpose, with respect to any data herein. MSCI Real Estate shall have no liability for any errors or omissions in connection with any data herein. Further, without limiting any of the foregoing, in no event shall MSCI Real Estate have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. You may not use the Penn State/ACY Indexes to create, verify or correct any index or index related product or services, including, for example, in connection with issuing, writing, creating, managing, selling, advising, redeeming, marketing, sponsoring or promoting any index-linked securities, financial instruments or products.