A recent survey of 2,000 non-homeowners revealed some concerning perceptions about the housing market. 17% of adults believe that the housing market will never regain stability and affordability. The survey also found that home affordability is currently so challenging that two out of five Americans think their only chance of becoming homeowners is by winning the lottery. Only 53% of the respondents expressed any level of confidence that they will eventually be able to own their own home in the future. These findings highlight the significant concerns and barriers many individuals face in achieving homeownership in the current housing market.
Apart from the 40% who view winning the lottery as their best shot at homeownership, an additional 26% feel that they would need to inherit money from someone to ever own a home. Surprisingly, one in five (19%) respondents even believe that marrying someone wealthy is the path to becoming a homeowner.
On average, Americans estimate that it would take them around three to four years to afford a home, but a concerning third of respondents believe it would take them five years or more. Furthermore, an alarming 20% express the belief that they will never be able to afford a home. These findings highlight the prevailing disappointment and financial challenges many individuals face when it comes to achieving their dream of homeownership.
Commissioned by Divvy Homes and conducted by OnePoll, the survey disclosed that nearly 60% (57%) of non-homeowners perceive it as challenging to afford a house in their current neighborhood.
Despite this obstacle, a considerable 67% remain hopeful about the prospect of owning a home someday. This optimism outweighs the number of people who consider themselves hopeless by more than five times (12%). In addition, 19% of respondents describe themselves as frustrated, while 11% express feelings of desperation. The survey provides insights into the prevailing sentiments and aspirations of individuals regarding homeownership in their respective communities.
Prospective buyers are facing significant challenges due to shifting market dynamics and increasing interest rates. A notable 52% of individuals hold the view that the current housing market is unstable. However, 46% of respondents remain optimistic that the situation will stabilize within the next two to five years.
In contrast, 17% harbor a more pessimistic outlook, believing that the market will never return to stable and affordable levels. These findings shed light on the varying perceptions and expectations of potential buyers amidst the evolving housing market conditions.
According to respondents, the average annual income needed to afford a starter home is $76,000, and they believe they would require a minimum of $45,000 for the down payment. Interestingly, almost half of the participants (44%) are open to the idea of taking on a second job or side gig to bring them closer to their goal of becoming homeowners.
On average, respondents consider 8% of the total purchase price as the ideal down payment size, making their dream home worth just under $570,000. For those aspiring to purchase a home in the next few years, their key priorities include affordable monthly payments (69%), a home that suits their current and future needs in terms of size (39%), and a location that is ideal for their family’s requirements (37%). These preferences and financial considerations offer valuable insights into the aspirations and requirements of potential homebuyers.
A significant portion of respondents (56%) believe they would face rejection if they attempted to apply for a mortgage at present. Among those currently renting, 47% express concerns about the escalating home prices, fearing they may become increasingly unaffordable before they can make a purchase.
In addition, 46% of participants view “throwing money away on rent” as one of the main drawbacks of not owning a home. They also worry about the uncertainty of their long-term living situation (41%) and the rising interest rates, which may hinder their ability to afford a home purchase (34%). These sentiments reflect the prevailing anxieties and challenges faced by individuals aspiring to become homeowners amidst the current housing market conditions.