Summary
A new report from Bankrate reveals that one in six aspiring homebuyers has given up on purchasing a home due to high prices and unaffordable mortgage rates. The report highlights that many potential buyers, especially younger generations, feel priced out of the market, which affects overall homeownership rates. This trend has implications for wealth accumulation and the generational shift towards permanent renting.
Key Facts
- 16% of aspiring homebuyers have given up on buying a home in the last five years.
- High home prices, low supply, and high mortgage rates are the main reasons for this trend.
- 28% of potential buyers cite local home prices as the most important factor in their decision not to buy.
- Gen Z feels particularly priced out, with 54% believing older generations had better opportunities.
- Millennials are the most likely to give up homebuying, with 22% unable to find affordable homes.
- To afford a typical U.S. home, a household needs nearly $117,000 in annual income.
- There is a risk of creating a generation of people who never own homes, which affects wealth accumulation.
