The American dream of owning a home appears to be more like a fantasy for many renters, with nearly half worrying that they’ll never be able to buy a home, according to a recent survey from LendingTree.
By Vance Cariaga
See: Why Renting Is Not a Bad Financial Option in 2021Find: How Much Should You Save for a Down Payment on a House?
The survey of 2,050 consumers, conducted by Qualtrics and released last week, found that 48% of renters question whether they’ll ever be able to buy their own place. More than half of Gen Xers (55%) who don’t currently own a home fret that they won’t be able to buy one — the highest percentage of any age group. That’s a pretty grim statistic, considering that some Gen Xers have already reached their mid-50s.
Similarly, more than half (52%) of millennials ages 25 to 40 also fear they won’t be able to buy a home.
The biggest barrier to buying a home is the down payment required, with 54% of renters saying they can’t afford to put enough money down for a mortgage. Other common barriers include high home prices (36%) and difficulty qualifying for a mortgage due to a low credit score (32%).
See: How to Buy a House With No Money DownFind: How to Rebuild Credit — 8 Steps You Can Take
The GBR survey also found that more than one-third of renters (35%) have $0 saved for a down payment. Poor credit, low wages and unaffordable home prices were three other popular reasons given for not being able to buy a house.
See: Rent-To-Own — What Is It and How Does It Work?Find: Ranked — The Best States for Millennials to Buy a Home
For those worried about getting on the right track to home ownership, LendingTree offers these tips:
- Limit your cost-of-living expenses by eating out less often, taking fewer vacations and buying less expensive cars.
- Explore low-down-payment options such as Federal Housing Administration loans for first-time buyers.
- Search for homes you can afford rather than fall in love with homes that would stretch your monthly budget. Better yet, shop for homes below your budget.
