Zillow Rent Zestimate vs CPI Rent Index.

This week, Anthony Pompliano sent out his opinion about just how skewed CPI Rent Index data is when compared to Zillow Rent Index. Let's break down each one:

CPI rent index uses the following criteria:

Based on Census data from the 1990 (yes, the year 1990 as in 32 years ago...) Decennial Census of Population and Housing, sourcing from approximately 32,000 total units surveyed, scattered around 87 census zones, with rent data collected every 6 months. If there is no collectable data, the CPI uses an increase of $1. Yes... one US dollar to offset any missing information in price increases.

Let's compare that with Zillow rent index:

Every month, Zillow collects Rent Zestimate for more than 100 Million US housing units. They source this data from Property taxes, recorded transactions, local MLS listings, and user-generated data like for sale by owner or for rent by owner. 

Also, Zillow uses every home (yes every home) to draw data in order to make an accurate Rent Index. 

Let's compare: 32,000 units vs 1 Million updated every 6 months with nominal $1 increase vs Monthly updates via digital data collection based on objective data. 

If you are renting because you can't afford to buy, consider buying because you may not be able to afford to rent...