Only one in 10 Americans now believe homeownership is easy or somewhat easy to achieve as soaring home prices and elevated mortgage rates push many buyers out of the market.
A Wall Street Journal/NORC poll that surveyed 1,502 adults in the US showed that 89% of participants think owning a home is essential to their future. However, only 10% said they believe homeownership can be easily achieved in the current market conditions.
Other factors cited by respondents as important to achieving their vision of the American dream included comfortable retirement and financial security.
How Many Believe the American Dream Is Still Achievable?
The WSJ report noted that more than 50% of Americans polled by researchers at the Public Religion Research Institute in 2012 said the American dream continues to hold true. In July of this year, the number of respondents who gave the same answer dropped to only 30%.
Economists who spoke with the outlet said the respondents were right to feel that way, especially as more younger Americans are being priced out of the housing market due to soaring home prices and elevated mortgage rates.
Home prices hit a new record in June, increasing by 5.4% year-over-year, according to data from the S&P CoreLogic Case-Shiller US National Home Price Index. According to the real estate listing website Redfin, the median home sale price as of July is $438,706.
Mortgage rates have also remained elevated, settling at 6.35% for the 30-year mortgage term and 5.51% for the 15-year term in the week ending Aug. 29, data from Freddie Mac showed. While that is lower than the peak of 8% in October, it is still significantly higher than pre-pandemic levels.
In addition to higher home prices and mortgage rates, rent prices are also soaring. In May, the median asking rent in the US was $1,653, marking a 0.8% climb year-over-year. It was the highest level recorded since October 2022 when rental prices were about $1,700. Additionally, it was the second consecutive increase following nearly a year of decreases.
READ NEXT: Renting Is Now $1,000 Cheaper Than Buying a Starter Home in the US: Report
