[coloradan]

How do you think housing prices should be included in CPI? Spell it out.

What fraction of the public rents, and what fraction owns? Reflect that ratio, and what the underlying markets do. For example, if 1/3 rents and 2/3 own, and rents get cheaper by 10%, but new houses double, have the "housing" part of the index show 1/3 of .9, plus 2/3 of 2.0, or, 1.633 net increase in average cost.

[Toddsterpatriot]

You're close, but remember the definition: The CPI or Consumer Price Index is a measure of the cost of goods purchased by average U.S. household. It is calculated by the U.S. government's Bureau of Labor Statistics.

If 75% is the current homeownership rate, 75% of the country is not purchasing a house. My house could double in price tomorrow and this would not cost me anything. My mortgage payment is unchanged. If gasoline doubled in price that would impact me because I'll buy gas this week, I won't buy a new house for 10 or 15 years.