Wasatch Front housing prices increased 0.8 % from June to July; more than doubling the jump in housing costs nationally during the same period. That’s according to the latest Zions Bank Consumer Price Index. The Cicero Group does the research for Zions Bank. Randy Shumway is the CEO at Cicero. He says housing was the main driver behind the inflation from June to July.
“Many leases are renewed during the summer months and so when price increases are applied, they’re applied going into the summer months and so that’s being reflected.”
Shumway says local consumers spend 36% of their budget on housing and it showed in the jump. He says on the PLUS side wages are finally trending up.
“Average hourly earnings have risen by 2.6% over the past 12 months. That’s positive because it exceeds what the average inflation rate is, which means people have greater buying power,” says Shumway.
The Wasatch Front Consumer Price Index increased overall 0.1 percent in that period on a non-seasonally adjusted basis. According to the survey, prices are up one percent overall in the past 12 months. That compares to the increase nationally of 0.8 % according to the U.S. Bureau of Labor Statistics.
