There’s no doubt that many Americans equate homeownership with financial stability, and some even equate it to being a “grown up”. The American dream has seemingly always included owning a home, but is that changing?
Recently Experian conducted a survey and the results were indicative of a change in the way people think about buying a home. According to their results 27% of consumers are NOT planning to purchase a home in the next 5-10 years. That’s an 8% increase from 2016 and the largest increase in recent years.
One of the reasons may be that many consumers surveyed (54%) say homes are less affordable. Again, it was higher among those respondents from the West, with 62% agreeing the housing market is more expensive today while 57% are from the South and 53% in the Northeast.
Contrary to the constant bombardment of “restrained supply” that is being touted as the reason for fewer purchases, 64% of people believed there were enough homes on the market but that they were simply priced too high for purchase. This is a shocking revelation when you consider the Texas home market which recently surpassed an average of $250,000 for homes. Builders continue to expand large sub-divisions with lavish homes that may just be out of reach for the potential buyers.
Additional reasons cited for not purchasing a home include wanting more flexibility to relocate (37%) and almost 30% do not want to carry so much debt. One-third of millennial survey respondents want to invest in something else.