You can hide and unhide certain indexes on the graph by clicking on the legend. You can also select a specific period by dragging the cursor horizontally on the graph. Data and figures can be downloaded from the menu at the upper right corner of the graph.
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 (2018). 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).