Americans are predicting an all-time increase in house prices and rents in the coming year, according to the latest monthly consumer survey by the New York Fed.
The median expected rise in house prices is 5.5%, according to a survey of consumer expectations released on Monday. At the beginning of the epidemic a year ago, the forecast fell to zero. The rise was strongest in the south and north-east, and house prices are expected to rise in all age groups, education levels and income groups.
Rents are expected to rise for the fifth month in a row, and consumers expect rents to rise by 9.5% in the coming year. It is not only up from 9.3% in March, but also about twice as high as it was a year ago.
Overall consumer inflation expectations rose to 3.4 per cent in the coming year, the highest since August 2013. The median inflation expectation for the next three years is 3.1 per cent, the highest since July 2014.