More Than One-Third of Americans Without Homeownership Plans Fear They'll Never Be Able to Afford Buying a Home
Meanwhile, 55% of millennials agree buying a home is still an important part of the American Dream
LOS ANGELES, Feb. 19, 2020 /PRNewswire/ -- New data shows a notable mismatch between those hoping to own a home one day and those who believe they'll be able to afford it. WalletJoy's 2020 Hope for Homeownership Report found that 59% of Americans believe owning a home is still an important part of the American Dream, and more than half (55%) of millennials agreed. Despite those numbers, a staggering 38% of those Americans that don't plan to ever purchase a home don't believe they'll ever be able to afford to buy one.
The report, commissioned by online personal finance resource and marketplace WalletJoy, engaged YouGov to poll the views of a representative sample of 1,227 American adults. It reveals that the most common perceived obstacles to homeownership among those that don't think they will ever be able to afford to purchase a home (base size 63) are salary level (48%) and the ability to attain a mortgage or loan to finance the purchase (39%).
"This report highlights how homeownership is still an integral part of the American Dream. As the largest purchase most people will ever make in their lives, it's understandable that many are concerned they'll never be able to achieve this milestone," said Yvette Ramos, a WalletJoy spokesperson. "Fortunately, there are more resources and savings strategies available now than ever before, so every American can have a realistic hope for homeownership. At WalletJoy, we're committed to sharing these financial resources so big life moments like purchasing a home can remain joyful, without financial fear getting in the way."
Americans Want "Forever Homes" and Are Willing to Spend for Them
The 2020 Hope for Homeownership Report found that nearly half of all Americans (49%) are planning to buy or have already purchased their "forever home." Notably, this includes 46% of millennials, despite the generation's demonstrated tendency to settle down later in life.
The report also found that the average American spends nearly $47,000 as a down payment for their home purchase. West Coasters tended to put down the most, clocking in with 53% higher down payments than the average Midwesterner, likely associated with higher real estate costs in the region.
The Obstacles to Homeownership
While the desire to own a home has remained strong, Americans cite many financial obstacles on their path to homeownership. Nearly half (48%) of Americans that don't think they will ever be able to afford to purchase a home say they fear their salary level is too low to ever be able to afford purchasing a home. Ability to attain a mortgage or loan to finance the purchase and credit score were the two next most cited concerns, with 39% and 33% agreeing, respectively.
Nevertheless, 22% of Americans say they're planning to purchase a home in the next two years, including 37% of millennials. To finance their down payments, 42% of all Americans and 48% of millennials will look to tap into savings. However, millennials say they're also open to new, alternative loan options and were three times more likely to consider them compared to their Baby Boomer counterparts.
To view the full findings from the 2020 Hope for Homeownership Report, click here.
Methodology
WalletJoy commissioned YouGov Plc to poll the views of a representative sample of 1,227 U.S. adults. Fieldwork was undertaken January 14 – 15, 2020. The survey was carried out online. The figures have been weighted and are representative of all U.S. adults (aged 18+).
About WalletJoy
WalletJoy is a personal finance resource and marketplace helping people make smarter financial decisions around life's most important moments. Whether it's a major cultural milestone like getting married, or buying a first home, WalletJoy helps people navigate the intricacies of personal finance with ease, so they can focus on what matters most: the moment worth celebrating. WalletJoy combines expert content and a new brand of personal finance tools and calculators designed for specific life milestones, to help Americans find joy for the moment, for life, and for their wallet.
To learn more about WalletJoy, visit www.walletjoy.com.
SOURCE WalletJoy
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