A recent survey from the Federal Reserve Bank of New York has shown that pessimism among renters about their ability to own a home is increasing. The survey revealed that the average probability of buying a home has dropped to 40.1 percent, the lowest in a decade.
President Joe Biden has overseen a significant decrease in homeownership expectations among renters, with the average probability dropping from 51.6 percent when he took office to 40.1 percent now.
Renters under 50 have seen a particularly sharp decline in their perceived chances of owning a home, with the average probability decreasing from 67.2 percent to 48.7 percent. This is the first time that younger Americans have fallen below a 50 percent likelihood of owning a home.
Income also plays a role in these decreasing expectations, with Americans earning less than $60,000 per year seeing their chances of buying a home drop from 41.3 percent to 31.3 percent. Even renters with incomes above $60,000 per year have seen a decline in their expectations, from 69.8 percent to 61.5 percent.
The Northeast and Midwest regions have experienced the most significant drops in homebuying expectations, with the Northeast falling from 43.4 percent to 25.8 percent, and the Midwest dropping from 61 percent to 36.7 percent.
Additionally, expectations for inflation in home prices have increased, with the average one-year-ahead home price growth expectation rising from 2.6 percent to 5.1 percent.
