Majority of US renters believe they will never own their own home

[LAUREN TAYLOR]

THE MAJORITY OF RENTERS SEE THE POSSIBILITY OF BECOMING HOMEOWNERS DISAPPEARING ACCORDING TO A FEDERAL RESERVE BANK OF NEW YORK HOUSING SURVEY.  THEY’LL NEVER BECOME HOMEOWNERS.

THE RESULTS SHOW – JUST SHY OF 75% OF RENTERS VIEW OBTAINING A MORTGAGE AS “SOMEWHAT OR VERY DIFFICULT” – NEARLY 8 AND A HALF PERCENT  INCREASE FROM LAST YEAR – WHICH THE NEW YORK FED CLASSIFIED AS A SERIES LOW.

ONLY 13-PERCENT OF RENTERS BELIEVE THEY’LL OWN A HOME ONE DAY.

THE SURVEY ALSO SHOWS – ATTITUDES REMAIN “STRONGLY POSITIVE” WHEN VIEWING REAL ESTATE AS AN INVESTMENT – AS JUST OVER 67-PERCENT OF RESPONDENTS SAID BUYING PROPERTY IN THEIR ZIP CODE WAS A “VERY GOOD” OR “SOMEWHAT GOOD” INVESTMENT A SLIGHT DECLINE FROM PRE-PANDEMIC LEVELS.

HOUSING AFFORDABILITY HAS SOMEWHAT IMPROVED SINCE LAST SUMMER.

THE MEDIAN PRICE FOR AN EXISTING FAMILY HOME IS JUST OVER $388-THOUSAND DOLLARS ($388,700) – DOWN FROM JUNE 2023’S HIGHER MEDIAN PRICE OF $415-THOUSAND DOLLARS, ACCORDING TO THE NATIONAL ASSOCIATION OF REALTORS’ HOUSING AFFORDABILITY INDEX. THE AVERAGE MONTHLY HOUSING PAYMENT WAS $2,040 THAT REPORT SHOWED.

THE FED SURVEY, WHICH WAS CONDUCTED IN FEBRUARY FOUND – RESPONDENTS EXPECT HOUSING PRICES TO INCREASE BY MORE THAN 5 PERCENT AND RENTAL COSTS TO INCREASE BY NEARLY 10 PERCENT OVER THE NEXT YEAR. 

EVEN THOUGH THE FED IS EXPECTED TO CUT INTEREST RATES BY THE END OF THIS YEAR – SURVEY RESPONDENTS BELIEVE MORTGAGE RATES WILL CONTINUE TO RISE TO 8.7-PERCENT A YEAR FROM NOW AND 9.7-PERCENT IN THREE YEARS.

HOMEOWNERS ARE LOOKING TO STAY PUT IF THEY’VE LOCKED IN A LOW MORTGAGE RATE. THE NEW YORK FED SAYS FEW U-S HOMEOWNERS ARE PLANNING TO MOVE IN THE NEXT THREE YEARS AND MOVING RATES ARE CURRENTLY LOW THROUGHOUT THE COUNTRY. RATES WERE ALREADY BELOW 10-PERCENT IN 2019 – WHEREAS THEY HOVERED AROUND 20-PERCENT, ON AVERAGE, IN THE 1980S.

FOR STRAIGHT ARROW NEW, I’M LAUREN TAYLOR.

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