Renter perceptions about the ease of obtaining a mortgage declined substantially from the prior year, according to results from the Federal Reserve Bank of New York’s 2024 Survey of Consumer Expectations (SCE) Housing Survey. Approximately 74.2% renters believe obtaining a mortgage is somewhat difficult or very difficult; a year ago, 65.8% of respondents stated obtaining a mortgage was somewhat or very difficult.
Additionally, renters’ self-assessed probability of owning a home decreased by 4.3 percentage points to 40.1%, a series low.
Households expect home price growth to increase to 5.1% over the next year; a year ago, households predicted annual home price growth of 2.6%.
The home price growth expectations are above the pre-pandemic mean of 4.2% but below the 2022 series high of 7% annual price growth expectations. The increase in home price growth expectations is broad-based across the demographic groups surveyed but is particularly high among respondents in the South.
In addition to home price growth, respondents indicate rent price growth expectations of 9.7% for the next 12 months, up from 8.2% a year ago. The rent price growth expectations are the second largest in the history of the SCE Housing Survey.
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