The dream of homeownership seems to be harder and harder to reach for many, with rising costs and high interest rates creating insurmountable obstacles. According to a new Redfin study, 38 percent U.S. renters don’t believe they’ll ever own a home, up from roughly 27 percent less than a year ago.
Nearly half of renters who don’t believe they’ll buy a home in the near future said it’s because available homes are too expensive. The next most common obstacles: Ability to save for a down payment, ability to afford mortgage payments and high mortgage rates.
Roughly 14 percent simply aren’t interested in owning a home.
Nearly one-quarter of renters say they regularly struggle to afford their current housing payments, and an additional 45 percent say they sometimes struggle to do so.
“Housing costs are high across the board, but renting is a more affordable and realistic option for many Americans right now–especially those who have never owned a home and aren’t able to tap into equity from a previous sale,” said Redfin Chief Economist Daryl Fairweather. “While owning a home is usually a sound longterm investment, the barriers to entry and upfront costs of buying are higher than renting. Buying typically requires a sizable down payment and approval for a mortgage–things that are difficult for many people today, when the typical down payment is near $60,000 and mortgage payments are sky-high. The sheer expense of purchasing a home is causing the American Dream of homeownership to lose some of its shine.”
The Redfin-commissioned survey of roughly 3,000 U.S. residents was conducted by Qualtrics in February 2024. The report focuses on the 1,000 respondents who indicated they are renters.
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