Soaring costs is making home ownership less of the American dream and more of a pipe dream, according to a new nationwide survey.
The survey, conducted by website Craftjack.com, found that more than half of all Americans (61%) say the cost of buying a home is just too much right now. And about 1 in 5 say they don’t think they’ll ever be able to afford a home.
More than 1,000 people took part in the survey, which aimed to get a clearer picture on prospective homebuyers attitudes and goals in 2023.
Only 1 in 5 of those polled said they intended on buying a home in 2023, 30% of whom say it will be their first home.
But the bulk of respondents said they had no intentions on buying a home in 2023, blaming it mostly on the hefty price tag of buying.
Housing prices have been soaring across the nation following the COVID-19 pandemic, and Americans are feeling the crunch of inflation and rising interest rates, in addition to wages not keeping up with the cost of living.
Americans who say they are too scared to dive into home ownership have laid most of the blame on high mortgage rates. The survey found 69% of respondents were getting scared off by high rates. But uncertainty in the housing market (35%) and fear of a recession (30%) also played big roles for those who are pessimistic about their chances of owning.
Those fears are also measurable among homeowners. The survey found that 1 in 10 homeowners fear that if they were to try and sell their home, they wouldn’t be able to find someone to buy it.
Of course, all those problems are highly dependent on where you are looking. California has sky-high home prices, but other states across the country are more budget-friendly. Finding a good location is the second-biggest reason that people aren’t ready to buy, the survey says.
So if you’ve decided it’s just not financially realistic to buy a home in 2023, at least there’s renting… right?
Renters say they are also feeling the squeeze and are pessimistic about things getting better.
Of the renters surveyed, most (58%) said the cost of rent went up in the last year. An overwhelming amount (73%) believe rent is going to go up in 2023 and 64% believe that rent is more expensive than it should be.
If you feel like you’re stuck between a rock and a hard place — unable to buy a home and being charged more and more for rent — you aren’t alone in that feeling.
For more on the methodology of the survey, click here.