Saving For A Downpayment Keeps Renters From Owning

April 13, 2017

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.

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