Surge in Rental Households Reflects Housing Affordability Crisis
1 month ago

The number of rental households has surged at three times the rate of homeowners in the third quarter of this year, maintaining a trend that has been ongoing for almost a year due to rising affordability concerns. A report from Redfin revealed that renter households increased by 2.7% year-over-year during the September quarter, reaching a record 45.6 million.

In contrast, the homeowner household count showed a modest growth of 0.9%, also reaching a record high of 86.9 million. This growth in renter households represents the second-fastest increase since 2015, falling just behind the 2.8% growth rate noted in the first quarter of 2024. "With home prices at record highs and mortgage rates remaining elevated, renting is increasingly the only viable choice for many young people and families," commented Sheharyar Bokhari, Senior Economist at Redfin. Home prices have risen by 6% year-over-year as of September, with affordability continuing to be impacted by high mortgage rates.

The asking rent also saw a rise of 0.6% annually in September, remaining largely stagnant for the past two years as per Redfin’s findings. Bokhari further noted, "Gen Z and future generations may not view homeownership as a life goal, and the rentership rate may continue to rise for years to come." Stability in rental prices can be attributed to a significant influx of new multi-family units entering the market, following a building boom that commenced during the COVID-19 pandemic.

New multifamily housing units are expected to reach an annual rate of 647,000 through the third quarter, marking the highest level since records began in 1994. Despite the Federal Reserve's decision to cut interest rates by 50 basis points in September, Chen Zhao, the Economic Research Lead at Redfin, remarked last week that it was "surprising" to see mortgage rates return to 7%.

Nevertheless, pending home sales have risen by 4.5% year-over-year during the four weeks ending October 27..

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Manufacturing PMI
2025-01-02 02:45:00
Actual
50.5
Forecast
51.6
Previous
51.5

China Manufacturing Purchasing Managers’ Index (PMI) provides an early indication of the economic activities in the Chinese manufacturing sector on a monthly basis.

Nationwide House Prices y/y
2025-01-02 08:00:00
Actual
4.7%
Forecast
3.8%
Previous
3.7%

Nationwide House Prices measure a change in value caused by inflation using a statistical method to construct an 'average house'.

Nationwide House Prices m/m
2025-01-02 08:00:00
Actual
0.7%
Forecast
0.1%
Previous
1.2%

Nationwide House Prices measure a change in value caused by inflation using a statistical method to construct an 'average house'.

Manufacturing PMI
2025-01-02 09:15:00
Actual
53.3
Forecast
53.6
Previous
53.1

Purchasing Managers' Index (PMI) is based on monthly questionnaire surveys of carefully selected companies which provide an advance indication of what is really happening in the private sector economy by tracking changes in variables such as output, new orders, stock levels, employment and prices across the manufacturing sector.

Riksbank Monetary Policy Meeting Minutes
2025-01-02 09:30:00
Actual
Forecast
Previous

It's a detailed record of the Swedish Central Bank (Riksbank) Policy Board's meeting, providing in-depth insights into the economic conditions that influenced their decision on where to set interest rates.

Manufacturing PMI
2025-01-02 09:45:00
Actual
46.2
Forecast
44.9
Previous
44.5

Purchasing Managers' Index (PMI) is based on monthly questionnaire surveys of carefully selected companies which provide an advance indication of what is really happening in the private sector economy by tracking changes in variables such as output, new orders, stock levels, employment and prices across the manufacturing sector.

M3 Money Supply y/y
2025-01-02 10:00:00
Actual
3.8%
Forecast
3.5%
Previous
3.4%

M3 is a “broad” monetary aggregate that comprises M2 plus repurchase agreements, money market fund shares and units as well as debt securities with a maturity of up to two years.

Final Manufacturing PMI
2025-01-02 10:00:00
Actual
45.1
Forecast
45.2
Previous
45.2

Purchasing Managers' Index (PMI) is based on monthly questionnaire surveys of carefully selected companies which provide an advance indication of what is really happening in the private sector economy by tracking changes in variables such as output, new orders, stock levels, employment and prices across the manufacturing sector.

Private Loans y/y
2025-01-02 10:00:00
Actual
0.9%
Forecast
0.9%
Previous
0.8%

It measures the change in the total value of new loans issued to consumers and businesses in the private sector.

Markit/CIPS Manufacturing PMI
2025-01-02 10:30:00
Actual
47.0
Forecast
47.3
Previous
48.0

Manufacturing CIPS (The Chartered Institute of Purchasing and Supply): A monthly gauge of manufacturing activity and future outlook.

MBA Mortgage Applications
2025-01-02 13:00:00
Actual
-12.6%
Forecast
Previous
-0.7%

The Weekly Mortgage Applications Survey contains 15 indices covering application activity for fixed rate, adjustable rate, conventional and government loans for home purchases and refinances.

Initial Jobless Claims
2025-01-02 14:30:00
Actual
211 000
Forecast
220 000
Previous
219 000

Initial Jobless Claims is a report issued by the U.

Markit Flash U.S. Manufacturing PMI
2025-01-02 15:45:00
Actual
49.4
Forecast
48.3
Previous
49.7 R (48.3)

Markit Flash U.

Crude Oil Inventories
2025-01-02 17:00:00
Actual
415.6 M Barrels
Forecast
Previous
421.0 M Barrels

The Weekly Petroleum Status Report (WPSR) provides timely information on supply and prices of crude oil and principal petroleum products in the context of historical data and forecasts.

Bank Holiday
2025-01-02 23:00:00
Actual
Forecast
Previous
Unemployment Change
2025-01-03 09:55:00
Actual
Forecast
15 000
Previous
7 000

According to the definition of ILO, as concretised by the EU, any person aged between 15 and 74 years is considered unemployed if he/she was not employed in that period, but actively sought work over the four weeks preceding the survey.

Unemployment Rate
2025-01-03 09:55:00
Actual
Forecast
6.2%
Previous
6.1%

The Federal Employment Agency, counts persons as job-seekers who are registered as unemployed with the employment agencies, are temporarily without a job or perform just a marginal part-time work (i.

M4 Money Supply m/m
2025-01-03 10:30:00
Actual
Forecast
0.1%
Previous
-0.1%

The Broad money aggregate M4 measures the change in the cash outside banks (i.

Mortgage Approvals
2025-01-03 10:30:00
Actual
Forecast
69.00
Previous
68.30

Lending to individuals consists of sterling lending secured on dwellings (i.

ISM Manufacturing
2025-01-03 16:00:00
Actual
Forecast
48.3
Previous
48.4

The Manufacturing ISM Report On Business is based on data compiled from purchasing and supply executives nationwide.

Natural Gas Storage
2025-01-03 16:30:00
Actual
Forecast
Previous
3529 BCF

This report tracks U.

Fed's Barkin Speaks
2025-01-03 17:00:00
Actual
Forecast
Previous

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