- Households expect strong home price growth of 7.0 percent over the next twelve months, a sharp increase from 5.7 percent growth a year ago. Expectations over the five-year horizon were unchanged from last year, with households anticipating average price growth of 2.2 percent (annualized).
- On average, households expect rent increases of 11.5 percent over the next twelve months, compared with 6.6 percent in February 2021.
- Renters see a lower probability of ever owning a home; their reported average likelihood of owning fell to 43.3 percent from 51.6 percent a year ago—the first reading below 50 percent in the series’ history.
- Households expect rates on thirty-year, fixed-rate mortgages to rise sharply in the future, to 6.7 percent on average a year from now and 8.2 percent in three years’ time.
For more details:
The SCE Housing Survey, which has been fielded annually in February since 2014, is part of the broader Survey of Consumer Expectations. The interactive web feature below presents time trends for variables of interest for the overall sample as well as for various demographic groups. As in previous years, we are also releasing a detailed background report that describes the sample and presents summary statistics for a larger number of questions.
Press Release: Home Price Expectations Diverge in the Short- and Medium-Term; Sharp Increases in Rent Expected Over the Next Year
Blog: Expected Home Price Increases Accelerate over the Short Term but Remain Stable over the Medium Term