This is the lowest level since the Federal Reserve Bank of New York began asking the question in 2015.
Higher prices seem to be the driving factor: Twenty-two percent of households in the survey reported that they had planned to buy a home but now view rent as a better financial decision. Most respondents prefer to either rent (36%) or say they wait for prices to drop before buying (42%).
The shift in sentiment in the New York Fed survey was driven by families with less college education and lower incomes.
About one in three (34%) of those surveyed who earn less than $60,000 think they will eventually own a home. This is down from 46% in 2020.
Similarly, 34% of those with a lower bachelor’s degree expect to own a home, down from 46% two years ago.
Meanwhile, families are preparing for higher rental prices.
Households expect rents to rise 11.5% over the next 12 months, nearly double the 6.6% pace projected in February 2021. Over the next five years, households expect annual rent to rise 5.2%, compared to 4.4% a year ago.
“All these numbers suggest a rise in rents in the near future, followed by more moderate growth in subsequent years,” the Federal Reserve Bank of New York said in the report.
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