The U.S. Housing confidence Index fell to 66.9 in January 2016, down from a January 2015 number of 67.4. This drop was due in large part by diminished expectations of the market’s future, according to Zillow.
While this might seem like bad news at first, there is a silver lining. Americans aged 18-34 still believe homeownership and the American Dream go hand-in-hand, to the tune of 65 percent. That is more than any other generation. Additionally, people-of-color were more likely than whites to consider homeownership an important aspect of the American Dream.
This means that while confidence may have fallen overall, there is still a strong desire for homeownership (it is at its highest level in two years) among key demographic groups.
The problem is that rising rents and stagnant incomes are making saving for a home very difficult.