Washington, DC CNN —Renters and homeowners are experiencing inflation differently, according to new data from Bank of America — and, unsurprisingly, renters are taking the hit.
Secondly, even if a typical mortgage payment is higher than a typical monthly rent payment, because renters’ income tends to be less than homeowners, more renters put a larger share of their income toward rent than homeowners put toward mortgage payments.
Restaurants are the only sector where homeowners and renters are both still showing an increase in spending from last year, and homeowners significantly outpace renters.
Even controlling for income — which is necessary because renters tend to have lower incomes than homeowners — renters are showing less spending strength than homeowners in their same income group in most spending categories.
Looking ahead, however, this wedge between the spending of renters and homeowners may narrow, the report points out.
Persons:
Bank of America —, Freddie Mac’s, —, Freddie Mac
Organizations:
DC CNN, Bank of America, Consumer, Federal Reserve, Joint Center for Housing Studies, Harvard University
Locations:
Washington