Houses are very expensive.
This is the feeling of youth according to a new survey redfin, a real estate firm and website. Nearly 1 in every 5 Millennials and Gen Zers who responded to a recent housing survey believe they will never own a home.
The report surveyed 1,340 Gen Z respondents aged 18 to 26 and 1,973 Millennials aged 27 to 42. They were asked, “Do you believe you will ever own your own home in the future?”
According to the report, lack of affordability is the No. 1 barrier to homeownership for young Americans. Nearly half of Gen Z and Millennial renters who believe they are unlikely to buy a home in the near future say the high prices of homes on the market are keeping them from buying.
Several other affordability-related reasons were also cited as factors, including lack of ability to save for a down payment and mortgage rates being too high. Some people also said they are unable to afford their student loan payments as well as their monthly mortgage payments.
The survey was conducted for 5,079 US residents who either moved in the past year, were planning to move in the next year, or were renting out their home.
“It’s really tough for young buyers,” said Max Stokes, an agent with Compass Real Estate in New Jersey. “They are being pressed from all sides.”
Rents are rising along with home prices, Stokes said, making it difficult to save for a down payment with rising rents. The national average rent price is now $2,038. Since February 2023, when rents hit $1,936, prices have increased about 5%, according to rent.com, Meanwhile, the median home sales price rose to $406,700 in July National Association of Realtors, It has been above $400,000 for the second month in a row, and is up 45% from July 2019 before the pandemic.