American dream of owning a home is dead, majority of renters say

Sixty-one percent of renters worry they’ll never afford a home, believing it’s just too expensive regardless of their hard work.

For many renters, the idea of owning a home in America is becoming increasingly out of reach. A survey conducted by the Harris Poll and released exclusively to The Guardian presents a dire situation where areas have soared to levels of unaffordability.

The American dream of owning a home “is looking more like a daydream for renters,” according to Libby Rodney, Harris Poll’s chief strategy officer.

The high cost of housing is not just a financial issue but also a threat to people’s sense of security.

“When you think about Maslow’s hierarchy of needs, and housing is right at that foundational level of security, the implications on consumer psyche when things feel so unaffordable is something that will impact everyone,” said Libby Rodney.

Despite the desire for owning a home, a majority of renters – 61% – fear they may never achieve it. Many feel resigned to the belief that no matter how hard they work, owning a home is beyond their means.

The situation in the U.S. housing market shows big problems. A study by Redfin found that only 16% of homes for sale in 2023 were affordable for the average American family. This is much lower than the 50% of homes that were affordable in 2013, according to the Guardian.

The housing market reflects these challenges, with only a small fraction of homes deemed affordable to the average American household. Complications from the pandemic, combined with interest rate hikes, have led to a decline in home sales.

During the pandemic, there were problems in the housing market. In 2021, a lot of houses were sold, reaching 6.1 million, which was the highest since 2006. But then, during the summer of 2022, there was a lot of inflation, meaning prices went up a lot. To control this, the Federal Reserve raised interest rates several times.

As a result, in 2023, the interest rates for mortgages went up to 7.79%, the highest they’ve been in twenty years. Because of this, fewer people bought houses, and home sales dropped to the lowest they’ve been in thirty years, according to the National Association of Realtors.

Given these challenges, both renters and homeowners are hesitant to participate in real estate transactions, according to the findings. And as the dream of owning a home fades for many, there’s growing pressure on policymakers to address the affordability crisis in the housing market.