MNI BRIEF: Housing Inflation Expectations Rise -NY Fed Survey

U.S. household expectations for home price inflation reaccelerated after falling last year, according to an annual New York Fed survey, with average one-year ahead expectations reaching their second highest reading in the history of the survey. Rent inflation one-year-ahead expectations also increased to the second highest since 2022, the Fed bank said.

Average one-year-ahead home price growth expectations increased to 5.1% in February 2024 from 2.6% in February 2023, slightly above the pre-pandemic mean of 4.2%, the New York Fed said. Rent price growth expectations for the next year increased by 1.5 pp to 9.7%. Five-year ahead expectations for both home prices and rent were essentially flat, the survey found. (See: MNI INTERVIEW: CPI Rent Easing Expected To Continue - Apt List)