New data from the Federal Reserve Bank of New York suggests American renters are becoming increasingly pessimistic about their chances of eventually becoming homeowners. According to the Survey of Consumer Expectations, anticipation of homeownership is now at an all-time low of 40.1 percent, significantly down from 44.4 percent a year ago. The percentage of renters expecting to one day be homeowners has plummeted by over 10 points since Joe Biden took office.
When Biden first entered the White House, the average belief in future homeownership was 51.6 percent. The drop has been even larger amongst renters aged 50 and under, with 48.7 percent today believing in future home ownership, down from 67.2 percent when Biden took office — a nearly 20-point drop.
Contrary to Biden’s assurance that his policies would spur economic growth from the grassroots level upwards, Americans in the lower income bracket also express deeper pessimism regarding their likelihood of homeownership. Those earning less than $60,000 annually assessed their average chance of buying a home at 31.3 percent this year, down from 41.3 percent in February 2021.
Renters earning above $60K also manifested a declining homeownership expectation, decreasing to 61.5 percent from 69.8 percent when President Biden took office.
The decline in homeownership anticipation has been prominently significant in the Northeast and Midwest regions. In the Northeast, the rate dropped to 25.8 percent this year from 43.4 percent in 2021, while expectations in the Midwest fell from 61 percent to 36.7 percent.
Worries over the economy and inflation consistently rank among voters’ top three concerns. Biden’s time in the White House has been marked by a steep economic decline in the U.S., and over half of Americans view the economy under Biden as “poor.”