Renters’ hopes of being able to buy a home have fallen to a record low, New York Fed survey shows

Renters’ hopes of owning homes have plummeted to a record low of 13.4%, driven by soaring interest rates, high housing costs, and a pessimistic outlook.

Obtaining a mortgage has become significantly harder, with nearly three-quarters of renters struggling to qualify.

Mortgage rates have reached their highest since 2023, making affordability an even greater challenge.

The median home price continues to climb, with monthly payments averaging over $2,000.

Renters anticipate further increases in both housing prices and rental costs over the next year.

The outlook for mortgage rates is also grim, with respondents expecting them to rise even higher in the future.

The Federal Reserve’s efforts to curb inflation have had little impact on renters.

Despite indications that the Fed may begin cutting interest rates later this year, survey respondents remain cautious, predicting that mortgage rates will continue to climb.

The combination of these factors is creating an insurmountable barrier for renters aspiring to homeownership.

The dream of owning a home has become increasingly distant, and the future prospects for residential mobility seem bleak.