According to a survey between March 1-4, 2022, commissioned by Bankrate®, the New York City-based, consumer financial service company, and conducted by YouGov, by all available means, data, and metrics, housing prices are still soaring. The growth seen by the typical single-family home over the past two years has been scorching and surprisingly consistent. At some point, something must give way, and it seems that affordability has been the first to fall.
The survey of 2,350 email respondents found that the respondents very much value the stability of owning a single-family home and view it as a key indicator of economic soundness. It also found that for respondents that did not own a home, they felt that soaring prices amid an environment of rising interest rates were holding them back from achieving homeownership.
In a statement prepared for the release of the latest report, Bankrate’s Chief Financial Analysist, Greg McBride said, “Non-homeowners cite insufficient income, high home prices, and not being able to afford a down payment or closing costs as the most common barriers to becoming a homeowner. High—and rising—home prices can contribute to the feelings of not having enough income or savings accumulated to buy a house.”
“Nearly three in four homeowners say they would still buy their current home if they had it to do all over again,” McBride continued. “Paying down debt, building savings, and knowing the limits of what you can afford all provide the stable financial foundation on which no-regrets homeownership is built.”
According to the survey, 74% of respondents ranked owning a home first as the highest hallmark of economic prosperity. This is followed by being able to retire (66%); a successful career (60%); owning a car (50%); having children (40%); and getting a college degree (35%).
Additionally, the data on owning a home was relatively consistent across all age groups above 26 years old. The only generation to not view home ownership as the top spot was Generation Z (now aged 18-25), but they still ranked it at a close second; their first choice as having a successful career (60%).
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