NAR: Disconnect Between Homebuyer Aspirations and Realities

Eight out of 10 non-homeowners recently surveyed by the National Association of REALTORS® (NAR) identify owning a home as part of the American Dream. Their realities—limited affordable housing, perceived lack of a down payment, and student debt—are hampering those aspirations.

NAR’s Aspiring Home Buyer Profile, which analyzes 2016 data from its Housing Opportunities and Market Experience (HOME) survey, shows that despite the sentiment among non-homeowners leaning positive, the share of non-homeowners who believe it is a good time to buy a home steadily declined throughout the year, from 63 percent in the first quarter to 55 percent in the fourth quarter.

“Nearly all non-homeowners said they want to own a home in the future (87 percent), but it’s evident that higher rents and home prices—up 41 percent in the past five years—along with limited entry-level supply and repaying student debt have combined to make buying a challenging goal,” says Lawrence Yun, NAR’s chief economist.