05/06/2024 | Press release | Distributed by Public on 05/06/2024 09:12
NEW YORK-The Federal Reserve Bank of New York today released results from its 2024 SCE Housing Survey, which is part of the broader Survey of Consumer Expectations (SCE) and provides information on consumers' housing-related experiences and expectations. The results show that the pace at which households expect home prices to rise in the next year has reaccelerated after falling last year, with average one-year ahead expectations now reaching their second highest reading in the survey's history. In contrast, home price growth expectations for the next five years declined slightly. Expectations about the change in the cost of rent were considerably higher than home price expectations but followed a similar pattern, as rental price growth expectations increased for one-year-ahead and were essentially flat for five-years ahead.
Homeowners' expectations about the likelihood of refinancing their mortgages over the next 12 months rebounded slightly after falling last year, but remain well below pre-pandemic levels. Renters' views on the ease of obtaining a mortgage deteriorated substantially, with 74.2% stating that obtaining a mortgage is somewhat or very difficult. In fact, renters' self-assessed probability of ever owning a home decreased to a new series low.
The New York Fed also issued an accompanying Liberty Street Economicsblog post that estimates the extent to which mortgage rate lock-in is suppressing U.S. household's moving plans.
Key findings from the 2024 Survey, which was fielded in February 2024, are:
Home Prices/Rents
Housing Outlook
Mortgage Rates
Homeowners and Renters
About the SCE Housing Survey
The SCE Housing Survey, fielded annually as part of the Survey of Consumer Expectations (SCE) since 2014, provides rich and high-quality information on consumers' experiences, behaviors, and expectations related to housing. The survey collects data on households' home price growth perceptions and expectations; intentions regarding moving and buying a home in the future; and perceptions of credit conditions, as well as climate risk. For homeowners, the survey collects detailed information on their mortgage debt, past actions and experiences such as foreclosure or refinancing, and expectations regarding future actions, such as taking out new debt or investing in the home. For renters, the survey elicits preferences for owning versus renting, and perceptions regarding the ease of obtaining mortgage credit, and expectations of evictions, among other things.
More information about the SCE survey goals, design, and content can be found here.