While monthly mortgage payments may be manageable, many renters can't even get to that point.
According to the first edition of the Zillow Housing Aspirations Report, 67.9 percent of renters in the survey said that saving for a downpayment was the biggest obstacle to buying a house. The majority of renters of both genders, all age groups, and all income levels all indicated that they are having trouble with the downpayment.
Renters are hit with a double whammy: Rent prices continue to increase, which makes it difficult to save extra income, and home prices also continue to rise. A renter eying a certain home may find that the home has appreciated in value in the time it takes to save for a hefty downpayment.
Other barriers from homeownership included qualifying for a mortgage, debt burdens, and job security.
Still, the first ZHAR isn’t all doom and gloom. … More than half (63 percent) of renters are confident they will be able to afford a home someday, with 25 percent saying they plan on buying in the next three-to-five years.
Advertisement
Related Stories
Housing Markets
Metros Where Housing Prices Have Doubled in Less Than 10 Years
Historical data show it's taken less than 10 years for home prices to double in 68 of the country’s 100 largest cities
Housing Policy + Finance
Even With Inflation Running Hot and Elevated Mortgage Rates, Buyer Demand Rises
Mortgage rates will likely stay high for the next few months, but that doesn't seem to be deterring homebuyers
Financing
Q1 2024 Foreclosure Activity Rises Slightly
Data show New York, Houston, and Chicago topping the list of major metros with the greatest number of foreclosure starts during Q1 2024
