The confidence gap between renters and owners is shrinking in areas across the nation, according to Zillow’s Housing Confidence Index. Renter confidence rose 4.4 points from last year to 62.4, with roughly 5 million renters saying they expect to buy a home this year, an increase of 1 million from last year. Homeowner confidence rose 3.3 points from last year to 70.6. The index is measured on a 100-point scale, with measures above 50 indicating a surplus of confidence.
The share of renters who expect to buy a home this year increased in eight metro areas including Atlanta, Chicago, Dallas, and San Francisco. Young adults age 18 to 34 who said they expect to buy a home in the next 12 months increased in half the metro areas surveyed. The largest year-over-year percentage point increases among those younger renters who indicated plans to buy were in Phoenix, San Francisco, and Atlanta. Only six metro areas saw no change in confidence and four areas saw points decrease. The largest percentage point decreases were in Los Angeles and Miami.
The Federal Housing Finance Agency issued a report detailing its progress on initiatives released in the 2014 Strategic Plan for the Conservatorships of Fannie Mae and Freddie Mac and the 2014 Conservatorship Scorecard. The report highlights activities Fannie Mae and Freddie Mac undertook to maintain credit availability in a safe manner, reduce taxpayer risk, and build a new infrastructure. FHFA Director Melvin L. Watt said some very important steps have been taken to meet FHFA strategic goals, while much more remains to be done.