Nearly 40% of renters in the United States said they believe they will never be able to buy a home amid the country's housing affordability crisis, according to a new survey.
Nearly two in five (38%) of renters said they do not believe they will ever own a home, per a survey released Friday by real estate firm Redfin. That number is up from 27% reported last year.
When asked why they aren't likely to purchase a home in the near future, 44% of renters said the available homes on the market are too expensive. The second leading reason, mentioned by 35% of survey respondents, was being able to save for a down payment.
Other reasons cited include the ability to afford mortgage payments (33%), high mortgage rates (32%), lack of financial support from family or friends (17%), lack of homes for sale (15%), recent loss of employment (13%), and student loans (10%).
Housing Affordability Crisis
The Redfin survey comes as housing affordability is becoming increasingly out of reach for many Americans. For starters, hopeful homebuyers in 22 states and Washington D.C. would need to earn more than $110,871 to comfortably afford a median-priced home of $420,343, according to a recent survey from Bankrate.
Home prices have also gone up, increasing by 40% since 2019 and 7% in the last year alone, Redfin noted. In addition, home prices are expected to rise by 5% this year, according to a forecast from research firm Capital Economics.
The rising home prices have also led nearly 50% of homeowners and renters in the country to skip meals, delay medical treatments, and sacrifice other essentials to afford their monthly housing payments.
"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," Redfin Chief Economist Daryl Fairweather said in the report. "The sheer expense of purchasing a home is causing the American Dream of homeownership to lose some of its shine."
The Redfin-commissioned survey was conducted by Qualtrics and focuses on the answers of 1,000 respondents who indicated they are renters.
