Is a lack of having a down payment holding back renters from buying a home? A new survey from Zillow found that nearly 70% of renters in 20 U.S. metros said that was the case. When you consider that the U.S. homeownership rate hovering near an all-time low, rents at record highs, and mortgage payments cheaper than rent in all but two of the 35 largest U.S. metros, the findings certainly seem to make sense. Zillow’s Housing Aspirations Report (ZHAR) also found that:
- Millennial renters are more confident than any other generation that they will be able to afford a home someday.
- The majority of respondents (66 percent) believe owning a home is necessary to live The American Dream, and 72 percent believe owning a home increases your standing in the local community — millennials believe these two statements more than any other generation.
- About half of renters surveyed said debt and qualifying for a mortgage were barriers to homeownership.
- A 20% down payment on a typical U.S. home costs more than two-thirds of the national median annual household income. In pricier markets, it can cost more than 180% of the average annual income.