New information out about housing in the Federal Reserve Bank of New York Housing Survey gives us a current snapshot of rent and renters.
More than 35 percent of renters have been renting for ten years or more. Many people let outside of homeownership and real estate asset-building cycles.
The issues that have caused people to miss rent payments typify how many financial obligations are beyond the typical person’s control.
The financial speed bumps hold people back from taking out a mortgage and purchasing a home. That is worrisome since home prices are forecast to continue to rise.
The survey shows that households expect home prices to rise faster over the coming twelve months than they expected last year. However, rent change expectations were higher than home price expectations over both the short- and medium-term.
The expectation is rent will increase 11.5% over the next 12 months, compared to 6.6% in February 2021.
Renters also reported a marked decline in their expectations of ever owning a home.