While 86% of middle-income Americans say inflation is impacting their daily lives, many haven’t taken advantage of higher interest rates on savings. In fact, 61% haven’t moved their savings to a high-yield account or a certificate of deposit (CD), despite the potential benefits. Explore the latest research from Santander US to learn more about how inflation is shaping consumer behaviour and shifting attitudes towards homeownership ⬇️
Santander US released new research that shows while middle-income Americans remain optimistic about their financial futures, they continue to navigate prices pressures from inflation. More consumers (81%) consider inflation a major concern in Q3, and 86% say it has impacted their daily lives. Nine in 10 (89%) say they have taken some action in response to inflation, such as scaling back on retail spending. As a result of these efforts, households have been able to remain current on their bills, and more of them (71%) say they are on the right track toward financial prosperity than a year ago. While many households continue to feel the effects of inflation, few consumers have taken advantage of the higher rates available on savings through a high-yield savings account or certificate of deposit (CD). Six in 10 households (61%) have not yet moved their savings to earn a higher rate of interest, and 24% are unaware of the interest rate they currently earn. The survey also identified a change in mindset around homeownership, which is falling in importance as consumers seek out flexibility and affordability, especially among younger generations. Seven in 10 Gen Z and millennials (69%) say owning a home was more important for their parents’ generation, and six in 10 (59%) believe homeownership as a sign of financial prosperity is an outdated concept. Even among younger homeowners, 46% say owning a home is more trouble than it is worth and miss the financial flexibility of renting. Multifamily housing has proven to be a cost-effective option for many middle-income consumers. Of those residing in a multifamily unit, two-thirds agree they are a good solution to produce more affordable housing options and increase the housing supply. https://lnkd.in/e4pQt-6i