A new report published by NerdWallet reflect the bleak feelings Americans ( especially Gen Z and Millennials ) have about buying a home today .
STACY ZARIN GOLDBERG
Homeownership used to be an attainable goal for most adults — the image of the American dream come true . In 2023 , that finish became even more difficult to reach equate to recent year , with few than 23 % of those looking for homesfinding successin an ever - challenge market , agree to the NerdWallet 2024 Home Buyer Report . Those face for a home wo n’t be surprised that the National Association of Realtors reported that October 2023 was the worst month for home sales in 13 years .
Credit:STACY ZARIN GOLDBERG
The phone number of successful home plate purchase spend from 34 % in 2022 due to several factors , including :
Whether it ’s because of the res publica of the market place or a shift in value , 64 % of Americans say buying a place is n’t the measure of achievement it once was . More than one-half of Americans ( 54 % ) say the air pressure to own a domicile in the U.S. is overwhelming , a view more commonly felt among Gen Z and Millennials , with just 21 % of them planning to grease one’s palms a home in 2024 . In fact , 74 % of Gen Z and 71 % of Millennials see the lodging market place as the worst it ’s ever been , though they may be incognizant that in 1981 , the mortgage rate was at over 18 % .
Along with the 6 to 8 % interest rate that do n’t seem to be dropping to the 2020 first anytime presently , many homebuyers are both unprepared for and unrealistic about their budget and home plate price : The average purchaser want to expend $ 274,800 . This price may sound fair , but the national mediocre cost of a theatre is $ 100,000 more — over $ 388,000 , up 50 % in the past five years . The unrealistic finish damage create it knockout for homebuyers to find what they want , specially with the currently squiffy supply .
Along with the barrier of thehigh toll of homes , buyer are n’t saving enough for down payments . In the NerdWallet view , only 31 % of respondents said they had started a down requital fund for their home purchase . However , the dream of purchasing remains strong , with 53 % saying they ’re look at list apps for their ideal home .
“ Planning to buy and really repose the foundation to make buying potential may be two very different thing , ” Holden Lewis , NerdWallet home and mortgages expert says . “ A down payment , for example , can take years to accumulate . hoi polloi go for to buy this year or even within the next several years could benefit from strategic saving and keeping tablet on their credit long before they start home shopping . ”
The less - than - optimal outlook for home buying means renting is a long - condition reality for many . Some Americans who pull ( 37 % ) say they design on doing so everlastingly , and 55 % of tenant say they prefer rent to the responsibility of homeownership . Some may just be resigning themselves to it—56 % of renters do n’t believe homeownership will ever be a reality for them .
