More than two in five middle-income renters say they earn more than their parents did at the same age but still can’t afford a home, according to a recent survey by Neighbors Bank in Missouri.
The survey found that 44% of middle-income renters said they were unable to afford a home despite believing that they made more than their parents at the same age. More than two in three renters (68%) wouldn’t buy a home this year, even if a relative covered half their down payment.
More than half (57%) of middle-income renters said the dream of homeownership feels out of reach for them. At the same time, roughly a quarter of renters (24%) has stopped saving for a new home or never started saving.
A separate, more recent survey by Neighbors Bank found that many potential homebuyers misjudged the housing market, with only 35% correctly identifying the 30-year mortgage rate at the time of the survey, with 45% believing rates were higher than they actually were.
That same survey found that 72% of homebuyers have delayed their home search, waiting an average of 13 months for mortgage rates to improve.
