Americans Expect Record Jump in House Prices, Rent in Fed Survey
(Bloomberg) -- Expectations for growth in U.S. home prices and rents over the coming year rose to the highest levels on record in the latest monthly consumer survey by the Federal Reserve Bank of New York.
The median expectation for house prices was an increase of 5.5%, according to the Survey of Consumer Expectations published on Monday. The series hit a low of zero a year earlier during the early weeks of the pandemic. The rise was strongest in the South and Northeast, and was broad-based across age, education and income groups.
Expectations for rents rose for a fifth straight month, with consumers predicting a 9.5% jump in prices over the coming year. That’s up from 9.3% in March, and about twice the pace of a year earlier.
Overall consumer inflation expectations for the coming year rose to 3.4%, the highest since August 2013. The median expectation over the next three years was 3.1%, the highest since July 2014.
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