Americans expect the increase in housing prices to accelerate
The increase that Americans expect in the short term in housing prices in the country increased to 5.1 percent and rents increased to 9.7 percent.
The US Federal Reserve (Fed) New York Branch published the results of the 2024 Housing Survey.
According to the results of the survey conducted in February, which provides information about consumers’ experiences and expectations regarding housing, the increase expected by households in housing prices for the next year increased to 5.1 percent.
Although this rate remained below the record increase expectation of 7 percent recorded in 2022, it was above the pre-pandemic average of 4.2 percent.
Last year, house prices were expected to increase by 2.6 percent within a year. The long-term house price increase expectation decreased to 2.7 percent annually.
The increase expectation for rental prices increased by 1.5 points to 9.7 percent for next year. This rate was recorded as the second highest increase expectation in rent. The rent increase expectation increased from 5 percent to 5.1 percent in the long term.
Household mortgage loan interest rate expectations increased to 8.7 percent one year later and 9.7 percent three years later.
Tenants’ expectation of owning a home decreased by 4.3 points to 40.1 percent.