Home affordability is currently a major challenge, prompting nearly 40% of Americans to believe that winning the lottery is their only shot at becoming homeowners. This revelation comes from a recent survey of 2,000 non-homeowners, which further reveals that only 53% feel confident about owning a home in the future. Interestingly, 26% of respondents believe they would need to inherit money, while 19% feel that marrying someone wealthy is their ticket to homeownership. On average, Americans estimate that it would take them three to four years to afford a home, with a third believing it would take five years or more. Shockingly, 20% of respondents do not have any hope of ever being able to afford a home.
In light of these challenges, almost half of the respondents expressed their willingness to take on a second job to fulfill their dream of homeownership. A survey conducted by OnePoll on behalf of Divvy Homes discovered that a majority of non-homeowners (57%) find it difficult to afford a house in their current neighborhood. Despite this, 67% remain hopeful about the possibility of owning a home someday, surpassing the number of hopeless individuals by more than five times. However, 19% describe themselves as frustrated and 11% as desperate.
The survey also highlights the impact of market dynamics and rising interest rates on potential buyers. While 52% believe that the current housing market is unstable, 46% anticipate stabilization within the next two to five years. On the other hand, 17% do not believe the market will ever return to stable and affordable levels.
Respondents estimate that they would need to earn an average salary of $76,000 per year to afford a starter home, with a down payment of at least $45,000. Nearly half of the respondents (44%) are open to getting a second job or side gig to get closer to their homeownership goal. They consider 8% of the overall purchase price to be the ideal down payment size, indicating an ideal home value of just under $570,000. Those who aim to purchase a home in the near future prioritize affordable monthly payments (69%), a suitable home size for their current and future needs (39%), and an ideal location for their family (37%). Additionally, 63% of respondents admit to struggling to make ends meet on a daily basis.
Unfortunately, 56% of respondents believe they would be denied if they applied for a mortgage at present. Adena Hefets, Co-founder and CEO of Divvy Homes, explains that potential buyers are seeking alternatives to traditional mortgage financing due to rising rates and prices. She also notes that factors such as high interest rates, a lack of supply, and increasing cost of living are negatively impacting potential homeowners’ buying power, which puts the idea of a starter home in jeopardy.
Out of the respondents who currently rent, 47% worry about home prices continuing to rise before they can afford to buy. However, 46% believe that the market will stabilize within two to five years, making homes more affordable.
Interestingly, 46% of respondents consider “throwing money away on rent” to be one of the biggest drawbacks of not owning a home. Other concerns include feeling uncertain about their long-term living situation (41%) and watching interest rates increase before they can afford to purchase a home (34%). Affordability remains a significant issue, with 63% of respondents frequently struggling to make ends meet. This is primarily attributed to the high cost of living (69%) and rising inflation (56%).
Hefets argues that the traditional mortgage process, designed in the 1940s for single breadwinners with stable W-2 incomes, has not adapted to the modern workforce. Today’s younger buyers often lack lengthy income histories and are increasingly self-employed or working as contractors. As a result, the majority of aspiring homebuyers feel that homeownership is just out of reach, and achieving the “American Dream” requires luck, extraordinary circumstances, or significant changes to the mortgage process in the current economic climate.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
