Renters and Owners Live in Separate Economies

Source: Brownstone Institute
by Peter St. Onge

“It turns out renters and homeowners are living in two entirely different economies, at least according to a new study by the Federal Reserve. Who, ironically enough, made it happen. In short, renters are in dire straits financially, while homeowners are ‘continuing to reap the rewards’ of cheap pandemic money that left renters with nothing but inflation. This is ‘complicating’ the Fed’s crystal ball as homeowners continue to splurge on everything from travel to eating out, ‘propping up prices with their discretionary spending power.’ Of course, the Fed’s money printers are what are propping up prices. But the robust homeowner spending means they’re not seeing the distress.” (06/01/24)