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I need help creating a thesis and an outline on How Does The Rising Rate Of Inflation Bring Down The Prices Of Houses In The United States. Prepare this assignment according to the guidelines found in
I need help creating a thesis and an outline on How Does The Rising Rate Of Inflation Bring Down The Prices Of Houses In The United States. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. Since two-thirds of households in the US or even more have possession of the houses that they reside in, the weight of Owner–Equivalent Rent in the CPI is significant. it accounts for around 23.8% of headline CPI and around 30.8% of the traditional core CPI which excludes energy and food. The rents languished due to an increase in the sale price of houses in the recent years. Since the year of 2000, it can be found that OER has increased approximately 26% while the government’s price index of existing homes has increased 80%. This indicates that the sale prices of existing homes and new homes rose by 5% or even more per year faster than rents since the twist of the millennium (Cecchetti, “Housing in Inflation Measurement”). Consumer Price Index Levels (1950-2003): Source: (Cedar Spring Software, Inc., “Price Inflation”). The above chart indicates how the effects of continuous inflation build up over the years. It consists of the index values of CPI for the month of December of each year. The value of index of 180 indicates that prices have risen 80% which is measured from a “base of 100”. With the help of index values, one can determine that goods and services which cost $3,000 at the end of the year 1992 will cost $3,897.00 at the end of the year 2003. The supposed household cannot wait for the inflation to be at a normal level. They must make sure that their interest and income keep pace with the long-term inflation or else they would become poor (Cedar Spring Software, Inc., “Price Inflation”). Percent Changes in Inflation (1950-2003): Source: (Cedar Spring Software, Inc., “Price Inflation”). The above chart depicts changes in the inflation rate and not the actual price changes.