Higher Rates, Higher Rents: How Monetary Policy Affects Housing Costs

Published on March 6, 2025

New study from Columbia Business School finds rising interest rates reduce home buying and increase demand in the rental market, especially among first-time and low-income buyers

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From the Research Lab: Housing Policy Comment by Hugh Frater '85

February 25, 2025
HOUSING POLICY COMMENTby Hugh Frater '85February 2025There is a lot of chatter in the housing world right now about what the Trump administration’s plans are with respect to housing policy, but one thing is clear - there has not been this much attention paid to housing and this much potential for favorable housing legislation and deregulation in a long time. This is the first time the President ha

Why Lower Interest Rates Might Cool Inflation Instead of Fueling It

March 9, 2025
As the Fed considers a September rate cut, new Columbia Business School research shows that lower interest rates may reduce rents, cooling one of the biggest drivers of U.S. inflation.