A gloomy new poll shows that a majority of renters in the United States no longer feel able to afford to buy a home.
In a January survey of 2,047 American adults conducted by Harris Poll Thought Leadership and Future Practice, 57% of renters agreed that the American dream of homeownership is over. The Guardian newspaper reported.
Homeowner agreement was slightly lower (43%), reflecting an overall negative perception of the economy in general and the lack of affordability in the housing market in particular.
The bleak national outlook largely reflects high current 30-year mortgage rates, which hit a 20-year high of 7.79% last year, a lack of available housing, and exorbitant prices for available housing. . It doesn’t help either that on Tuesday, reports surfaced that US inflation rose 3.2% in February, suggesting that interest rates won’t be eased immediately.
Libby Rodney, chief strategist at Harris Poll, told the Guardian that strange sentiment about the economy is “making people pessimistic about their ability to save for a future home”. “Given the instability of the economy, that seems to be reflected in this poll.”
In fact, more than 55% of both renters and homeowners say that the return on investment for homeownership today is different than in the past and that they are worried that the housing market will get worse in the future. “Given the current economic environment, I’m hesitant to move into real estate.”
Despite the defeatism, most of those surveyed said they would like to own a home, and most just don’t feel like it’s possible.
Another study published last month by Bankrate.com found the same thing. Americans still aspire to homeownership, but for most, it has become a fantasy rather than a goal.
“Basically, in the American psychology, they want to own a home. But it’s about what it takes,” Rodney said. “How can we meet these needs in a way that brings more security to people?”
