Housing is not experiencing rampant inflation when you look at the nation as a whole. We have one currency so the Fed has to try to strike a balance that works for everyone.
Rents are included in cpi, but home prices aren't. Now, of course they are correlated, but that's certainly one of the arguments against using cpi.
edit: answered my own question, the bureau of labor statistics has more numbers than you can shake a stick at.