Key findings
- Americans, especially renters, feel financially stretched by housing costs
- Most renters want to own a home, but few expect to as three in four (73%) Americans say buying a home has become more difficult in the last 5 years
- One in four (22%) renters do not ever plan on purchasing a home, with down payments and limited income as the top barriers
Americans feel financially stretched by housing costs
One in five (20%) Americans who rent or have a mortgage spend half or more of their pre-tax income on housing, while half (49%) spend between 25-49% and three in ten (31%) spend less than 25% on housing.
- Renters are nearly twice as likely than those with a mortgage to be spending 50% or more of their income on housing (25% vs. 14%).
Rent or mortgage is among the top stressors for Americans today: while the price of groceries (54%) and gas/transportation (51%) are putting the biggest strain on household budgets, 44% of Americans also cite their rent or mortgage. For renters, it is the single largest stressor (64%).
Sentiment surrounding housing costs are pessimistic: among renters and homeowners with an existing mortgage, only 28% say housing costs are comfortable or manageable. The other 72% are struggling to various degrees:
- 22% say their housing cost is about all they can handle (22%)
- 21% say housing costs feel tight but keeping up (21%)
- 16% say they are struggling to keep up
Once again, renters are much more likely than those with a mortgage to say they are struggling (25% vs. 4%).
Mortgage holders, while in a less precarious situation than renters, are also feeling the pain of rising costs, including taxes, insurance, and interest: 84% say their costs rose over the last five years, and 29% cite significant increases.
Most renters want to own a home, but few expect to as three in four (73%) Americans say buying a home has become more difficult in the last 5 years
The vast majority of renters (87%) want to own a home, but only 23% are certain about being about to do so; 29% say they might one day, and 34% want to own but believe they'll never afford it. Just 13% don't want to own. The "never able to afford it" feeling is equally shared across younger and older Americans (35% for 18-34, 36% for 35-64%).
The majority of Americans (73%) say buying is harder than it was five years ago (only 18% see no difference, and 9% say it's easier), driven by:
- Higher home prices: 72%
- Living costs limiting their savings: 70%
- Higher mortgage rates: 66%
- Fewer homes for sale: 19%
Similarly, 71% of Americans also say that home prices in their area have increased over the past year.
One in four (22%) renters do not ever plan on purchasing a home, with down payments and limited income as the top barriers
Most renters are optimistic about home ownership: 16% are currently looking to purchase a home, 62% are not currently looking but plan to purchase sometime in the future, and 22% say they never plan on purchasing a home. The following are the main barriers to home ownership for renters right now:
- 52% say they cannot afford a down payment
- 47% say their income or credit scores are too low to qualify to a mortgage
- 42% say mortgage rates are too high
- 32% say homes in their budget do not meet their needs
- 15% cite a lack of inventory in their area
Most Americans who are currently or hoping to eventually purchase a home prefer single family homes
- 72% want a single-family home
- 11% are looking for a multi-family home, such as a duplex or triplex
- 6% are looking for a condominium
- 6% are looking for a townhome
Most Americans looking to purchase are running into an obstacle with mortgage rates:
- 61% say a 7% mortgage rate is already too high
- One in four (26%) would tolerate mortgage rates between 8-10%, and 13% would tolerate mortgage rates 11% or higher.
- Expected down payment see more variation:
- 13% do not plan to put down any downpayment
- 17% would plan on less than 5%
- 16% would put down between 5-9%
- 16% would put down between 10-19%
- 16% would put down between 20% or more