42% Expect Economy to Worsen, Divided Over Rates Outlook: New Realtor.com Survey

Americans are torn over the economic outlook of the country, the housing market, and where interest rates are headed, according to a new survey from Realtor.com; however, younger generations, especially Gen Z, are more likely to be optimistic about the economy. Generations are split on the economy: 42% of Americans think the economy is going to get worse over the next 12 months.  Only 31% of Gen Z surveyed think the economy is going to worsen in the next 12 months, compared to 50% of baby boomers.  Americans are torn on interest rates: Across all generations, Americans feel torn over how interest rates will change over the next few months, with 33% thinking they will improve, 34% thinking they will stay about the same and 33% thinking they will get worse.  Baby boomers are most likely to think that interest rates will improve (40%), compared to only 30% of Gen x’ers, 32% of Millennials, and 31% of Gen Z’ers.  Across the board, Gen Z tends to skew more optimistic or neutral than other generations.  Younger Americans are more upbeat on the housing market: 40% of Americans think that the housing market will stay about the same over the next 12 months.  By generation, Millennials and Gen Z are more likely to skew neutral or positive compared to older generations.  Only 25% of Gen Z think that the housing market is going to get worse, compared to 37% of Gen X and 36% of Baby Boomers.  “Americans are clearly divided when it comes to the outlook for the economy and housing market, but what stands out is the optimism among younger generations,” said Joel Berner, senior economist at Realtor.com®. “Gen Z and Millennials have largely come of age in a period of high housing costs and volatile mortgage rates, yet they are more likely than older generations to believe conditions will hold steady or even improve. That optimism could be a powerful driver of housing demand in the years ahead, as younger buyers remain motivated to enter the market despite ongoing affordability challenges.”