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.