The homeownership rate is at its lowest since the early 1960s, and anxiety over student loans and down payments aren’t helping
Affordability, student loan debt, and down payment requirements are among the main factors in keeping many Americans from homeownership, according to a new survey from the National Association of Realtors.
As HousingWire explains, more than half of the survey’s respondents said that affordability was the top reason for not owning a home. In addition, 39 percent of respondents said that they have student loan debt, while another 59 percent said they do not want to take on a mortgage.
Down payments are also intimidating. A vast majority of the respondents said that a down payment of 10 percent or more is needed to buy a home. Many banks, though, have programs that require 3 percent (or even 0 percent) down.
NAR analyzed data from its Housing Opportunities and Market Experience survey in order to understand housing expectations and sentiment among homeowners and non-homeowners, renters and those who live with a family member.
At 63.7 percent as of Q4 2016, the nation’s homeownership rate is as low as it’s been in more than 50 years.