(Reuters) – U.S. households are expecting home prices to increase sharply and rents will rise quickly this year. However, growth in either is expected to slow down, while renters may see their chances of ever buying a home diminishing fast, according a Federal Reserve Bank of New York’s new survey.

The survey, published Monday, shows that home prices could rise by 7.5% in the coming year but only 2.2% on average for five years. This is because mortgage rates continue to accelerate.

However, rents could rise faster as they are forecast to jump 11.5% within the next 12 month and increase 5.2% each year over the next five.

Respondents to the survey last year had predicted a 5.7% increase in home prices, and a 6.6% increase in rents for the next year.

Renters reported a shockingly low likelihood of owning a house. This is down from 51% in 2021, and was the lowest level since 2014.

In order to reduce inflation which is currently at its highest point in 40 years, the Federal Reserve has increased interest rates. The average mortgage rate has risen by almost two percentage points in the last year, as it is now 5% on average for 30-year terms.

The industry survey, released Monday morning, showed that the confidence of single-family homebuilders in America fell to 7 months. This was due to rising home-borrowing cost and slow supply chains. Some first-time buyers were kept out by this.