Housing costs are a significant contributor to overall inflation, heavily influencing the Consumer Price Index (CPI) due to the economy-wide lack of affordable housing and high resource costs for new construction.  The report highlights differences between the CPI and the Personal Consumption Expenditures (PCE) index, noting that housing costs have a larger impact on the CPI, while healthcare costs have a more significant impact on the PCE.  Despite some improvements, mortgage affordability remains close to the worst levels since 2002, with high mortgage rates and low housing inventory exacerbating the issue for both renters and new homeowners.

https://www.urban.org/research/publication/housing-finance-glance-monthly-chartbook-may-2024