Northwestern Mutual: Majority of Non-Homeowners Say It Will Never Be Affordable

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Northwestern Mutual, Milwaukee, Wis., released its latest planning and progress study, finding that among Americans who are not currently homeowners, 53% say owning a home will never be financially affordable.

Broken down by generation, 58% of non-homeowner Millennials say it’s not an affordable goal, followed by 52% of Boomers (or older) and 51% of Generation X. However, only 49% of Gen Z said the same.

Querying the reason non-homeowners believe they’ll never be able to own, 64% pointed to not having enough saved for a down payment, 48% said mortgage rates are too high and 43% said the housing market is too competitive and they are therefore priced out.

“When it comes to whether people believe they can afford to own a home, age is a big factor,” said John Roberts, Chief Field Officer at Northwestern Mutual. “Gen Zers are still young and have more time on their side to get to a place where home ownership feels attainable. So, while it may feel out of reach now, they are hopeful that could change. Older people who have gone longer without owning a home are understandably going to feel less optimistic.”

The survey also found that two-thirds of Americans (65%) are reporting inflation as the dominant concern that could impact their finances this year, and 44% say inflation is their No. 1 obstacle to achieving financial security. More than half–52%–believe their household income is growing more slowly than inflation.

The vast majority–84%–report experiencing elevated grocery costs in the past three months, and 68% say they’ve seen higher utility costs.

In terms of types of non-mortgage debt reported by respondents, credit cards were the top of the list across generations, followed by car loans. Medical debt replaced personal debt in the top three with every generation except for Gen Z.