More Renters Give Up on Home Ownership
“The typical downpayment is near $60,000,” said Redfin’s chief economist Daryl Fairweather.
More renters foresee a bleak outlook for the prospect of ever owning a home. Nearly 40% have given up on that cornerstone of the American dream, discouraged by soaring house prices that are out of reach of many average households.
Prices have risen 8% from a year ago to $76,000 for the typical starter home, according to a Redfin survey prepared by Qualtrics. In many big cities, a price in that range would be impossible to find.
One in three respondents said they would be unable to save the amount required for a downpayment. “The typical downpayment is near $60,000,” said Redfin’s chief economist Daryl Fairweather. A similar share could not afford mortgage payments. One in five could not come up with the funds for maintenance and upkeep. And 10% could not contemplate home buying with student loans hanging over their heads.
On top of that, nearly 70% of renters say they already regularly or sometimes struggle to pay rent, which has now reached a median asking price of $2,000.
The age group most optimistic about homebuying is Gen Z – individuals aged 18-27. Only 8% of this cohort believe they will never own a home, compared to 22% of millennials, 40% of Gen X, and 81% of baby boomers.
“That stands to reason, as adult Gen Zers are in the early stages of their careers and have a lot of time to eventually become homeowners,” the report said.