Homeownership Dreams Dashed by Affordability Crisis
Homeownership aspirations face significant hurdles, with affordability being the primary concern across generations. Despite mortgage rates easing, they remain high compared to pandemic lows, and many, particularly younger generations, are struggling to enter the market.
A mere 7 percent of aspiring homeowners are currently actively searching for a home, reflecting the challenging market conditions. The cost of homes at Home Depot in the area is the most pressing issue, with 28 percent of aspiring homeowners citing it as their top concern. This is especially true for Gen Z and millennials, who are in their prime home-buying years but face record-high home prices and the worst affordability levels in decades.
The affordability crisis has led many to abandon their home-buying dreams. One in six aspiring homebuyers, or 16 percent, have given up in the past five years due to affordability issues. Among millennial buyers, this number rises to 22 percent. Younger generations, particularly Gen Z, feel they have fewer financial opportunities than older generations, with 54 percent holding this belief.
The high cost of homes and affordability challenges are the primary barriers to homeownership, with younger generations disproportionately affected. Despite mortgage rates retreating, they remain well above their pandemic lows, further exacerbating the situation. To address this, policymakers and industry stakeholders must work together to improve affordability and make homeownership more accessible.
