CHART OF THE DAY: U.S. Housing Inventory Hovering Around All-Time Lows

This chart from today's Early Look by Daryl Jones shows a 10% month-over-month decrease in housing inventory, dropping to a mere 1 million units in December.

Lack of housing is one big challenge keeping inflation elevated above the Fed's desired 2% rate.

You don’t have to be the Frank Lloyd Wright of economics to understand that this abnormally low supply will keep the supply/demand dynamics tight and keep a bid on housing prices. This matters because housing is roughly one-third of CPI.

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