Chart of the Day – Rent Change Expectations Going Back Up

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Source: https://www.newyorkfed.org/microeconomics/sce/housing%20.html#/housing_prices_31

At a Glance: Findings from the 2024 SCE Housing Survey (Fielded in February)

• Households expect home price growth to increase to 5.1 percent over the next twelve months, up from 2.6 percent a year ago. This is their second highest reading in the survey’s history, but below the series high of 7 percent in 2022. Expectations over the five-year horizon declined by 0.1 percentage point, with households anticipating average annualized price growth of 2.7 percent.
• Households expect rents to increase by 9.7 percent over the next twelve months, compared with 8.2 percent in February 2023, reversing last year’s decline.
• Renters put the probability of ever owning a home in the future at 40.1 percent, a decrease from 44.4 percent a year ago, reflecting a series low.
• Households expect mortgage rates to rise to 8.7 percent a year from now and 9.7 percent in three years’ time, both numbers a series high.
• Homeowners’ expected probability of refinancing in the next year rebounded slightly to 6.3 percent from 4.1 percent last year.