Majority of Renters Believe Homeownership is Out of Reach, Survey Reveals
In a disheartening reflection of the current housing market, a new survey reveals that a staggering 86% of current renters in the United States believe they cannot afford to buy a home. This daunting statistic underscores a growing concern that the American dream of homeownership is slipping away for many, leaving thousands of families in a state of financial despair.
Take Brent Bjornsen, a 39-year-old father who shared his frustrations with CNN Business. “Buying a home is absolutely something we would love to do,” he said. “But it seems out of reach.” Struggling with overwhelming debt, Bjornsen feels the weight of disappointment, particularly as a child of Baby Boomers who achieved what now seems unattainable for him. “Homeownership seems impossible, and that hurts.”
The survey, conducted by CNN, further highlighted that among those unable to afford a home, a majority are extremely doubtful about their future prospects. CNN reporter Matt Egan noted, “Fifty-four percent say it’s not too likely or not at all likely that they’ll ever be able to buy a home.” This sentiment reflects a profound pessimism about the American dream and poses significant political and economic challenges. Homeownership has long been seen as a path to wealth generation, and the growing divide between homeowners and renters threatens to widen the gap between the haves and the have-nots.
Jeremy Andersson, a 40-year-old father of twins, epitomizes this sense of hopelessness. “We have given up on homeownership,” he admitted. “We felt the societal pressure to buy a house because that’s the American Dream, right? Have a family and buy a house.” Yet, faced with exorbitant prices, Andersson has chosen to step away from the pursuit. “I’m not going to pay $350,000 for a run-down house. It almost seems laughable. We can’t find anything affordable for a family of four. I’m not going to play your game anymore. I’m done.”
Andersson’s frustration is palpable as he reflects on the emotional toll. “At first, I wondered if I was a failure as a father or husband because I can’t get my kids a lawn to play on,” he confessed. “It’s taken a lot of soul-searching to understand this is not my fault. It’s the fault of a poorly planned system.”
The issue isn’t just about current prices but also about the availability and affordability of starter homes. Traditionally, these homes are smaller and more affordable, designed for young families and first-time buyers. However, even these options are becoming prohibitively expensive. According to Zillow, the typical starter home now costs at least $1 million in 237 cities across the nation—a dramatic increase from just five years ago when only 84 cities met that criterion. Zillow defines a starter home as being among the lowest third of home values in a given region, and this surge in prices is putting even the most modest homes out of reach for many.
This housing crisis is a multifaceted problem. It’s not just about the rising cost of homes but also about wages not keeping pace with inflation, skyrocketing student debt, and other economic pressures that make saving for a down payment nearly impossible for many. The political implications are significant as well. With homeownership seen as a key component of the American dream, this widespread inability to achieve it could have profound effects on public sentiment and policy priorities.
The Biden administration and lawmakers across the political spectrum must address this growing crisis. Solutions could include increasing affordable housing supply, offering better financial assistance for first-time homebuyers, and addressing the root causes of housing market inflation. Without decisive action, the dream of owning a home may become a relic of the past for many Americans, further entrenching economic inequality and diminishing the prospects for future generations.
As the nation grapples with these challenges, the stories of individuals like Bjornsen and Andersson remind us of the personal toll behind the statistics. Their struggles underscore the urgent need for comprehensive solutions to ensure that the American dream of homeownership remains within reach for all.
