There’s a growing disconnect between how consumers feel about inflation and how they feel about the job market, and it matters whether you’re a homeowner, investor, or a real estate agent trying to read the room. According to the Federal Reserve Bank of New York’s latest consumer expectations survey for September 2025, Americans are bracing for higher short-term inflation while confidence in job security continues to slide.
Inflation expectations ticked up to 3.4 percent over the next year, up from 3.2 percent in August, and even five-year expectations inched higher. That’s a sign that consumers aren’t fully buying into the idea that inflation is under control. Interestingly, the largest jump in short-term inflation expectations came from households earning under $50,000 and those with no more than a high school education. These are the same households most exposed to rising prices, and often the ones fueling demand in the rental market.
