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Latest / Inflation Explained with Fexingo: CPI, Prices, and the Cost of Living for Everyday People

What Your Apartment Square Footage Tells You About Inflation

In this episode of Inflation Explained, Lucas and Luna explore a surprising inflation signal: the shrinking size of new apartments. As developers cut square footage to keep rents palatable, the price per square foot keeps climbing—a hidden cost that official CPI metrics don't fully capture. Lucas breaks down data from RentCafe showing that the average new apartment in 2025 was 887 square feet, down from 941 in 2020, while rent per square foot rose 12% in that period. They discuss how this 'shrinkflation' in housing distorts our perception of affordability and what it means for…

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