82% Consider Homeownership Part of the American Dream, Bankrate Finds
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More than eight in 10 Americans consider homeownership to be part of the American Dream, up from 78% last year and 74% in 2023, according to Bankrate, New York.
Homeownership was more commonly cited than being able to retire (71%), having a successful career (66%), having children (44%) and obtaining a college degree (35%) as components of the American Dream. Just 7% felt none of those were components of the American Dream.
Most aspiring homeowners–83%–point to one or more affordability challenges as reasons why they do not currently own a home, which include not having enough income (59%), home prices being too high (55%) and the inability to afford the down payment and closing costs (46%).
More than 6 in 10 (62%) aspiring homeowners cited current housing market conditions, which include mortgage rates being too high (34%) and lack of available homes/inventory (16%) in addition to the high house prices that 55% had pointed to. Other reasons include not having good enough credit (24%), not being ready yet (23%) and having too much debt (15%), Bankrate said.
“Americans consider homeownership to be the cornerstone of the American Dream, more so than anything else,” Bankrate Chief Financial Analyst Greg McBride said. “With household budgets already strained from elevated inflation and so many Americans living paycheck-to-paycheck, it comes as no surprise that aspiring homeowners point to insufficient income, high home prices, and being unable to afford the downpayment and closing costs as the major obstacles to homeownership.”
The report said younger generations are less likely to consider homeownership to be a part of the American Dream, with 78% of Gen Zers and 74% of millennials (ages 29-44) believing so compared to 84% of Gen Xers (ages 45-60) and 89% of baby boomers (ages 61-79).
More than three in five Americans (64%) say they are willing to take action to find more affordable housing. Among this group, the most frequently cited steps include downsizing living space (45%), moving out of state (38%), moving farther away from family and friends (29%), buying a fixer-upper (28%), and taking on roommates or living with additional family members (25%). Other actions Americans are willing to take to find more affordable housing include moving farther away from work (16%) and moving to a less desirable area (15%) with 4% stating other reasons.
“Moving out-of-state, farther from family and friends, or buying a fixer-upper each come with their own set of additional costs, further hampering the search for affordable housing,” McBride added. “When affordability is strained, it often leads buyers to reach to the very limit or beyond what they can comfortably afford. Leave some buffer in your budget so if unplanned expenses arise or you incur an income disruption, it doesn’t lead to a crisis.”
