That was the lowest level since the Fed began asking questions in 2015.
High prices appear to be a driving factor: 22% of households in the survey reported that they planned to buy a home but now view renting as a better financial decision. Most respondents prefer to rent (36%) or say they wait for prices to drop before buying (42%).
The change in sentiment in the NY Fed survey was attributed to less college and lower income families.
About a third (34%) of those surveyed making less than $60,000 think they will eventually own a home. This is down from 46% in 2020.
Likewise, 34% of those with a bachelor’s degree want to own a home, down from 46% two years ago.
Meanwhile, families are bracing for a spike in their rents.
Households expect rents to increase 11.5% over the next 12 months, nearly double the 6.6% rate predicted in February 2021. And over the next 5 years, households expect money Annual rents will increase 5.2%, compared with 4.4% a year ago.
“Taken together, these numbers suggest a spike in rents in the near future, followed by more moderate growth in the years to come,” the NY Fed said in the report.
