Spiraling Home Costs, Mounting Interest Rates Could Slam Door on First-Time Buyers

A For Sale sign is displayed in Falls Church, Virginia, on April 2, 2022. Stefani Reynolds/AFP via Getty Images

U.S. households expect home prices to continue to rise at a faster rate over the next year and that the value of their homes will appreciate at a slower rate over the next five years, a recent survey from the Federal Reserve Bank of New York indicates.

In addition, the survey shows that most Americans also expect rents to rise in the short- and medium-term.