News Home Trends Is the American Dream of Homeownership a Thing of the Past for Most? A new report published by NerdWallet reflects the bleak feelings Americans (especially Gen Z and Millennials) have about buying a home today. By Sharon Greenthal Sharon Greenthal Sharon is a writer and contributor at Better Homes & Gardens, where she writes, edits, and updates content on the website, refreshing recipes and articles about home design, holiday planning, gardening, and other topics. Before joining Better Homes & Gardens, Sharon began her career as a blogger, then became a freelance writer, focusing on home design and organization, midlife and empty nesting, and seniors and eldercare. Her work has been published on a range of websites, including Angi, Purple Clover, HuffPost, Grown and Flown, Seniors Matter, AARP’s the Girlfriend and the Ethel, and many other outlets. Learn about BHG's Editorial Process Published on January 23, 2024 Trending Videos Close this video player Photo: STACY ZARIN GOLDBERG Homeownership used to be an attainable goal for most adults—the epitome of the American dream come true. In 2023, that goal became even more difficult to reach compared to recent years, with fewer than 23% of those looking for homes finding success in an ever-challenging market, according to the NerdWallet 2024 Home Buyer Report. Those looking for a home won’t be surprised that the National Association of Realtors reported that October 2023 was the worst month for home sales in 13 years. What First-Time Homebuyers Need to Know, According to Real Estate Pros The number of successful home purchases dropped from 34% in 2022 due to several factors, including: High mortgage rates of 7.2% as recently as December of 2023, a dramatic increase over just under 3% in 2020 Low inventory of homes, resulting in higher prices Fewer new home builds due to rising interest rates and high prices of building supplies Whether it’s because of the state of the market or a shift in values, 64% of Americans say buying a home isn’t the measure of achievement it once was. More than half of Americans (54%) say the pressure to own a home in the U.S. is overwhelming, a sentiment more commonly felt among Gen Z and Millennials, with just 21% of them planning to buy a home in 2024. In fact, 74% of Gen Z and 71% of Millennials see the housing market as the worst it’s ever been, though they may be unaware that in 1981, the mortgage rate was at over 18%. Ready to Move on to Your Next Home? Here’s What Experts Want All Move-Up Buyers to Know Along with the 6 to 8% interest rates that don’t appear to be dropping to the 2020 low anytime soon, many homebuyers are both unprepared for and unrealistic about their budgets and home prices: The average buyer wants to spend $274,800. This price may sound reasonable, but the national average cost of a house is $100,000 more—over $388,000, up 50% in the past five years. The unrealistic goal price makes it harder for homebuyers to find what they want, especially with the currently tight supply. Along with the barrier of the high cost of homes, buyers aren’t saving enough for down payments. In the NerdWallet survey, only 31% of respondents said they had started a down payment fund for their home purchase. However, the dream of buying remains strong, with 53% saying they’re looking at listing apps for their ideal home. When Is It Time to Buy Your Forever Home? “Planning to buy and actually laying the foundation to make buying possible may be two very different things,” Holden Lewis, NerdWallet home and mortgages expert says. “A down payment, for example, can take years to amass. People hoping to buy this year or even within the next several years could benefit from strategic saving and keeping tabs on their credit long before they begin home shopping.” The less-than-optimal outlook for home buying means renting is a long-term reality for many. Some Americans who rent (37%) say they plan on doing so forever, and 55% of renters say they prefer renting to the responsibility of homeownership. Some may simply be resigning themselves to it—56% of renters don’t believe homeownership will ever be a reality for them. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit