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Midwest Consumer Price Index Soars, however Residential Inventory a Bright Spot for the Region

CHICAGO – The Midwest, U.S. consumer price index set by the Bureau of Labor Statistics reached an all time high in October raising 0.8% from September and 6.6% from a year ago.  Challenged supply chains and corporations attempting to recoup capital losses from the pandemic have been the drivers contributing to the recent inflation.

Chart 1. Over-the-year percent change in CPI-U, Midwest region, October 2018-October 2021

Food and energy costs seem to be the culprits.  Specifically, gasoline rose 2.2% from September hitting consumers at the pump.  Short-term considerations such as tapping into the federal oil reserves are being discussed by the federal government to help ease overall inflation in the U.S.  Natural gas and electricity costs have increased with inflation, however being watched closely going into the winter months.  

Midwest home inventory did not decrease as much as the rest of the U.S. according to Realtor.com’s October, 2021 Housing Market Trends Report.  Midwest active listings went down only -10.5% compared to the North East at -17.9%, South -25.8%, and the West -22.7%.  Nationally, the influx of smaller home construction is keeping choices for buyers limited along with continuing rise in home prices for both new and existing houses, according to the report. 

RegionActive Listing Count YoY
New Listing Count YoY
Median Listing Price YoYMedian Days on Market Y-Y
-3 days
North East
-3 days
-10 days
-8.0%9.7%-5 days
Source: National Association of Realtors