Rising Unaffordability Is Causing Renters To Abandon Hope Of Ever Owning A Home | ZeroHedge
Francesco Abbruzzino, The Uncensored Report, LLC
After two years of a buying frenzy that has become self-reinforcing as investors and speculators have sought to cash in on the trend, it looks like American homebuyers are getting ready to throw in the towel.
The New York Fed’s 2022 SCE Housing Survey (readers can find a breakdown on the New York Fed’s blog, Liberty Street Economics), released Monday, showed the that respondents believe they would be less likely to buy if they were to move compared to the year-ago survey, marking the first annual decline since the series began in 2014. Compared with last February, the drop amounted to a decline of 10 percentage points.
The drop was driven by the current renter segment; the Fed’s data showed renters were much less likely to buy compared to renters in the 2021 survey. The survey also showed that while respondents see prices for homes in their zip codes rising over the coming year, they expect that pace to cool five substantially over the next five years, slowing from an average of nearly 6 percentage points, to 2 percentage points, both on an annualized basis.
