Only about half of American non-homeowners are confident they’ll be able to own one someday, a sign that the affordability crisis is taking its toll on potential buyers.
A new survey conducted by OnePoll on behalf of Divvy Homes found that, of 2,000 respondents, just 53% are confident they can own a home one day.
Another 40% believe a lottery win is the only way they can afford a home, while others said they’d need to inherit money (26%) or marry rich (19%).
“A majority of aspiring homebuyers feel that homeownership is always just beyond their reach, that the ‘American Dream’ of homeownership is slipping away, and that it would take luck, extraordinary circumstances, or a serious change in the mortgage process to make it possible for them to own a home in today’s economic climate,” said Adena Hefets, Co-founder and CEO of Divvy Homes.
Hefets sais there are many factors putting downward pressure on a potential homeowner’s buying power including high interest rates, a lack of supply, and an increasing cost of living.
67% of respondents are hopeful about affording a home, far more than those who described themselves as hopeless, frustrated, or desperate.
Most of the respondents are betting that with enough time, they could buy a house. They think it would take them three to four years to afford a home, and a third think five years would suffice. But 20% expect they will never reach that goal.
In fact, more than half feel that if they applied for a mortgage right now, they’d be denied.
In 2022, 16.1% of mortgage applications were denied. Historically, the most common reason is an untenable debt-to-income ratio. Many would-be buyers are likely feeling the pressure of increasing credit card and other debt as inflation makes daily living more unaffordable.
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