Americans are bracing for higher home prices, according to the April 2024 Survey of Consumer Expectations published by the Federal Reserve Bank of New York’s Center for Microeconomic Data.
In the latest report, median home price growth expectations increased to 3.3% after remaining unchanged at 3.0% for seven consecutive months – this is their highest level since July 2022. The expectations for home price acceleration were most pronounced for respondents with a high school degree or less.
The median inflation rate is expected to be 3.3% one year from now, up from 3% in last month’s report. Median expected growth in household income declined by 0.1 percentage point to 3.0%. The series has been moving within a narrow range of 2.9% to 3.3% since January 2023 and remains above the February 2020 pre-pandemic level of 2.7%.
Median household spending growth expectations increased by 0.2 percentage point to 5.2%. The average perceived probability of missing a minimum debt payment over the next three months remained unchanged at 12.9%.
The survey is a nationally representative internet-based poll of a rotating panel of approximately 1,300 household heads. Respondents participate in the panel for up to 12 months, with a roughly equal number rotating in and out of the panel each month.