>...housing is a durable good (people don’t buy it week to week nor does rent change with such frequency),

Rent (and "owner occupied rents") are a part of the bundle used in calculating the CPI.

The owner occupied rent is a calculation of what the rent would be if the owner had paid rent on the house they own. For some background on this:

https://www.philadelphiafed.org/-/media/research-and-data/pu...