Forty percent of renters surveyed by market research firm OnePoll last month on behalf of Divvy Homes said they believe winning the lottery is their only chance at owning a property.
Four out of ten Americans express uncertainty about their ability to afford a home in the current administration of President Joe Biden.
According to the Divvy report, 26% of people believe they must inherit money to own a home. One in five, or 19%, even mentioned the need to marry someone wealthy.
The poll discovered that just 53 percent of individuals who do not own a home feel confident about accumulating sufficient funds to purchase a house eventually.
Fifty-six percent of respondents said they would be denied if they applied for a mortgage.
Potential buyers are seeking alternatives to traditional mortgage financing or cannot purchase homes due to rising rates and prices, according to a statement from Adena Hefets, co-founder and CEO of Divvy Homes.
Many factors affect a potential homeowner’s buying power, such as high-interest rates, a lack of supply, and an increasing cost of living. Due to these factors, the starter home market appears to be disappearing.
The respondents mentioned that they would require an average annual income of $76,000 to afford a starter home, in addition to a minimum of $45,000 in savings for a down payment.
Forty-four percent of the respondents expressed willingness to take on an additional job or engage in a side gig to afford a home.
Today’s younger buyers often have limited income history and are frequently employed as 1099 contractors, gig workers, or self-employed individuals.
They feel that the ‘American Dream’ of homeownership is fading and that it would require luck, exceptional circumstances, or significant changes in the mortgage process to make it feasible in today’s economic climate.
On average, major homeownership expenses consume approximately one-third of a family’s monthly income, with an income of at least required to own a typical house in half of the markets surveyed by ATTOM.
The median single-family home value is currently $250,000.