It’s a tough time to be a homebuyer. Home prices continue to flirt with record highs, and mortgage rates have more than doubled from their pandemic lows.
Bankrate conducted several surveys in the last year with polling agency YouGov Plc to keep up with the country’s changing opinions on homebuying. In each poll, Bankrate surveyed over 2,000 Americans age 18 and older on topics like home affordability and what homeowners regret about their home purchases. The resulting data, weighted to represent all U.S. adults, shines a light on Americans’ struggles with the high costs of homeownership.
For instance, more than half (52 percent) of aspiring homeowners — who Bankrate has defined as all U.S. adults who have owned a home in the past (but do not currently) or never owned a home but want to some day — say coming up with a down payment and closing costs poses a “very significant” obstacle, according to Bankrate’s 2025 Down Payment Survey. An additional 29 percent describe that hurdle as “somewhat significant.”
With many Americans downbeat on the U.S. economy, affordability challenges, including in the housing space, loom large. After all, a place to live isn’t a luxury; it is a necessity. As part of that, barriers to owning a home are consequential issues.
— Mark Hamrick, Bankrate’s chief economic analyst
Bankrate’s key insights on homebuying
Bankrate data center
Every week, Bankrate publishes proprietary surveys, studies and rate data, providing the latest data-driven insights on the state of Americans’ personal finances — including credit card debt, homeownership, insurance, retirement and beyond.
See more
Down payment and closing costs still pose a challenge
More than 4 in 5 (81 percent) of prospective buyers say the one-two punch of the expense of the down payment and closing costs is standing in their way, according to our 2025 Down Payment Survey. Fifty-two percent call the obstacle “very significant” and 29 percent refer to it as “somewhat significant.”
Among those not deterred by the down payment and closing costs, 8 percent describe the expense as “not very significant,” while 2 percent say it’s “not significant at all.”
Some aspiring homeowners not hopeful they’ll ever be able to save enough
For some aspiring homeowners, the challenges seem insurmountable. Twenty percent say they’ll never be able to save enough for a down payment on a home, according to our 2025 Down Payment Survey, unchanged from our 2024 survey.
Meanwhile, 12 percent say they’ll need 10 or more years; 9 percent say they’ll need 7 to 10 years; 11 percent say they’ll need 5 to 7 years; and 20 percent say they’ll need 3 to 5 years. Just 4 percent expect to have enough saved within a year, while 11 percent say they’ll have enough saved within 1-2 years.
“Patience may be called for many aspiring to homeownership,” Hamrick says. “We might continue to face challenges like elevated mortgage rates and a lack of housing supply at the heart of affordability challenges. At the same time, there’s no shame in renting. While waiting, there are benefits to building savings for a down payment and the inevitable other costs of homeownership, including maintenance, taxes and insurance.”
Separately, 22 percent of all American adults say they’ll never be able to afford their dream home, according to the latest Down Payment Survey. Among age cohorts, 29 percent of Generation X (ages 45-60) say they’ll never be able to afford their dream home, followed by 24 percent of millennials (ages 29-44), 20 percent of Gen Z (ages 18-28) and 18 percent of baby boomers (ages 61-79).
Americans slightly more optimistic about housing market
Forty percent of Americans believe now is a bad time to buy a home, according to our 2025 Down Payment Survey, a decrease from 42 percent in our 2024 survey.
Among other housing market headwinds, more than 2 in 5 (42 percent) say a buyer needs excellent credit to get a mortgage, while 41 percent say they think mortgage rates will remain elevated for the foreseeable future. Meanwhile, 18 percent say that renting is cheaper than owning a home.
Current homeowners got there through intentional savings
When asked how they came up with the down payment and closing costs on their first home, 44 percent of current homeowners say they saved specifically for that purpose, according to our 2025 Down Payment Survey. A smaller subset — 17 percent — say they used a first-time homebuyer grant or loan assistance program, and 15 percent received a monetary gift from family or friends. Meanwhile, 10 percent say they found an additional source of income percent, 8 percent say they took money out of retirement savings and 6 percent say they sold personal items such as jewelry, electronics or cars.
In last year’s survey, just 41 percent of owners credited saving, while 14 percent reported receiving gifts from family and friends and 9 percent said they tapped retirement savings.
As of April 2024, homebuying regrets are common, particularly high maintenance costs
Looking back on their home purchase, homeowners with regrets most commonly cite maintenance and other hidden costs being more expensive than they anticipated (40 percent), according to our Homeowner Regrets Survey. Other regrets include buying too small of a house (18 percent), buying a house in a bad location (15 percent), overpaying/paying too much (14 percent), their mortgage payment being too high (13 percent), buying too big of a house (10 percent) or not getting the best mortgage rate (10 percent):
Notes: Respondents could select more than one response; Percentages are among those who have a regret about purchasing their current home.
Source: Bankrate survey, April 15-17, 2024
If given the chance, over 2 in 3 homeowners would buy their house again
Despite regrets, most American homeowners (69 percent) would buy their current home if they had to do it over again, according to our Homeowner Regrets Survey. Another 19 percent of American homeowners said they wouldn’t buy their current home again and 13 percent said they didn’t know:
Note: Percentages are among U.S. homeowners.
Source: Bankrate survey, April 15-17, 2024
Younger Americans, like Gen Zers, tend to be happier with their homebuying decisions. Over three–quarters (77 percent) of Gen Z homeowners and 76 percent of millennial homeowners say, if they had to do it over again, they would still buy their current home, compared to 65 percent of Gen X homeowners and 66 percent of baby boomer homeowners.
As of March 2024, high housing costs keep people from achieving their American Dream
Owning a home, and the physical and financial security that comes with it, has historically been considered a part of the American Dream. That still seems to be the case, as 78 percent of U.S. adults say they consider owning a home to be part of the American Dream, according to our Home Affordability Survey. It’s the most popular option suggested by Bankrate — more than being able to retire (65 percent) or having a successful career (65 percent), among other options:
Note: Respondents could select more than one response.
Source: Bankrate survey, March 6-8, 2024
Among generations, Gen Xers and baby boomers are most likely to believe owning a home is part of the American Dream (83 percent and 88 percent, respectively). Gen Zers, who are less likely to own a home today compared to their older peers, are least likely to say owning a home is part of the American Dream (68 percent). Instead, Gen Zers most commonly cite having a successful career (70 percent).
-
No matter where Americans live, the majority believe owning a home is a part of the American dream. However, more people believe that in relatively affordable areas. More people in the Midwest and South say owning a home is part of the American Dream (82 percent and 80 percent, respectively) compared to those in the West and Northeast (76 percent and 73 percent, respectively):
We asked: Which, if any, of the following do you consider to be part of the “American Dream?”
Northeast Midwest South West Note: Respondents could select more than one response.
Source: Bankrate survey, March 6-8, 2024Owning a home 73% 82% 80% 76% Owning a car, truck or other automobile 49% 57% 55% 51% Having children 44% 49% 44% 43% Getting a college degree 38% 32% 35% 37% Being able to retire 61% 73% 66% 61% Having a successful career 65% 63% 65% 66% None of these 8% 6% 6% 5% Similarly, Americans living in rural areas are the most likely to say owning a home is part of the American Dream (87 percent) compared to those in cities (71 percent) or suburbs (81 percent):
We asked: Which, if any, of the following do you consider to be part of the “American Dream?”
City Suburb Town Rural area Note: Respondents could select more than one response.
Source: Bankrate survey, March 6-8, 2024Owning a home 71% 81% 80% 87% Owning a car, truck or other automobile 48% 52% 56% 65% Having children 42% 43% 49% 51% Getting a college degree 38% 35% 37% 30% Being able to retire 56% 70% 70% 72% Having a successful career 63% 65% 69% 63% None of these 8% 5% 5% 5%
Over 3 in 4 Americans who don’t own homes cite unaffordability
Most U.S. adults (78 percent) who don’t own a home but desire to cite affordability-related reasons as holding them back, according to our Home Affordability Survey. Specifically, they cite not having enough income (56 percent), home prices being too high (47 percent) or not being able to afford a down payment and closing costs (42 percent).
Millennials who don’t own a home but desire to are the most likely generation to say too much debt is keeping them from purchasing one (25 percent), compared to 17 percent of Gen Xers, 16 percent of baby boomers and 13 percent of Gen Zers. Gen Zers who don’t own a home but desire to were the most likely generation to say they just aren’t ready yet (43 percent):
Notes: Percentages are of U.S. adults who don’t own a home but have a desire to; Respondents could select more than one response
Source: Bankrate survey, March 6-8, 2024
“Owning a home is still the centerpiece of the American Dream, but affordability is the main obstacle to making that a reality,” Bankrate Chief Financial Analyst Greg McBride says. “Aspiring homeowners point to the combination of insufficient income, high home prices and not having saved enough for the down payment and closing costs as the dominant pain points.”
Among Americans who don’t own their own home but want to, women are significantly more likely than men to say they can’t afford the down payment and closing costs (47 percent compared to 36 percent):
We asked: Which, if any, of the following are reasons you don’t currently own a home?
| Men | Women | |
|---|---|---|
| I don’t have enough income | 56% | 55% |
| I can’t afford a down payment and closing costs | 36% | 47% |
| Home prices are too high | 46% | 48% |
| Just not ready yet | 27% | 24% |
| My credit isn’t good enough | 26% | 26% |
| Mortgage rates are too high | 25% | 31% |
| Too much debt | 18% | 18% |
| Lack of available homes/inventory | 12% | 11% |
| Other | 7% | 6% |
|
Notes: Percentages are of U.S. adults who don’t own a home but have a desire to; Respondents could select more than one response. Source: Bankrate survey, March 6-8, 2024 |
||
-
Despite the high cost of housing in the region, Northeasterners who don’t own a home but want to are the least likely to say they can’t afford a down payment and closing costs on a home (32 percent) compared to 43 percent of Midwesterners, 45 percent of Southerners and 43 percent of Westerners:
We asked: Which, if any, of the following are reasons you don’t currently own a home?
Northeast Midwest South West Notes: Percentages are of U.S. adults who don’t own a home but have a desire to; Respondents could select more than one response.
Source: Bankrate survey, March 6-8, 2024I don’t have enough income 53% 59% 56% 54% Home prices are too high 48% 46% 45% 50% I can’t afford a down payment and closing costs 32% 43% 45% 43% Mortgage rates are too high 29% 25% 27% 31% Just not ready yet 28% 28% 26% 20% My credit isn’t good enough 23% 23% 31% 25% Too much debt 19% 23% 17% 15% Lack of available homes/inventory 10% 12% 11% 14% Other 6% 7% 7% 6% Rural Americans who don’t own a home but want to are the most likely to cite affordability-related reasons (85 percent), compared to non-homeowners in suburbs (79 percent), towns (77 percent) and cities (76 percent).
They are also far more likely to say they don’t have enough income to buy a house (68 percent), compared to people living in areas that typically have access to higher-paying jobs, such as suburbanites (57 percent), city dwellers (53 percent) or people living in towns (51 percent):
We asked: Which, if any, of the following are reasons you don’t currently own a home?
City Suburb Town Rural area Notes: Percentages are of U.S. adults who don’t own a home but have a desire to; Respondents could select more than one response.
Source: Bankrate survey, March 6-8, 2024I don’t have enough income 53% 57% 51% 68% Home prices are too high 45% 51% 49% 44% I can’t afford a down payment and closing costs 36% 46% 42% 49% Mortgage rates are too high 30% 27% 25% 24% My credit isn’t good enough 26% 27% 27% 27% Just not ready yet 24% 28% 26% 20% Too much debt 18% 20% 16% 15% Lack of available homes/inventory 11% 14% 10% 11% Other 5% 8% 8% 9%
More than 2 in 3 Americans would make a change for more affordable housing
The majority (69 percent) of Americans would be willing to do something to find more affordable housing. Many of those people would be willing to downsize their living space (44 percent) or buy a fixer-upper (34 percent), according to our Home Affordability Survey. Many would even be willing to move out of state (34 percent).
Across most generations, the top sacrifice for more affordable housing would be downsizing (62 percent of baby boomers, 49 percent of Gen Xers and 33 percent of millennials). The exception is Gen Zers, who most commonly say they’d be willing to take on roommates or living with additional family members (38 percent):
Note: Percentages are of U.S. adults who would be willing to do something to find more affordable housing; Respondents could select more than one response.
Source: Bankrate survey, March 6-8, 2024
Among those willing to take steps to find more affordable housing, women (49 percent) are more likely than men (39 percent) to say they’d be willing to downsize their living space, but men are more likely to consider moving to a less desirable area (24 percent versus 15 percent of women) or move farther from work (20 percent versus 15 percent of women).
Geographically, those in the Northeast (40 percent) would be most willing to move out of state (40 percent), and those in the Midwest would be the least likely to do so (27 percent). Those in the West would be the most willing to move to a less desirable area (27 percent), while those in the Northeast would be the least likely (14 percent).
Only 31 percent of Americans are unwilling to do anything to find affordable housing, particularly among older generations:
- Gen Zers: 19 percent
- Millennials: 24 percent
- Gen Xers: 33 percent
- Baby boomers: 40 percent
Bottom line
If you’re a first-time homebuyer determined to buy this year, there are a few options available to you, even if you don’t have a hefty down payment saved. Check your state’s housing finance agency to see if you’re eligible for loans or grants for your down payment and closing costs. Several big banks and nonprofits also offer down payment help.
Purchasing your first home can be intimidating, but there are options to help you achieve this big step in your financial journey.
-
The survey on down payments was conducted by YouGov Plc. between Jan. 15-17, 2025. Total sample size was 2,408 adults, of which 1,270 were homeowners. Fieldwork was undertaken between April 15-17, 2024. The survey was carried out online. It employed a non-probability-based sample using both quotas upfront during collection and then a weighting scheme on the back end designed and proven to provide nationally representative results.
The survey on homeowner regrets was conducted by YouGov Plc. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,408 adults, of which 1,270 were homeowners. Fieldwork was undertaken between April 15-17, 2024. The survey was carried out online. It employed a non-probability-based sample using both quotas upfront during collection and then a weighting scheme on the back end designed and proven to provide nationally representative results.
The survey on homeownership and the American Dream was conducted by YouGov Plc. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,317 adults. Fieldwork was undertaken between March 6-8, 2024. The survey was carried out online. It employed a non-probability-based sample using both quotas upfront during collection and then a weighting scheme on the back end designed and proven to provide nationally representative results.
Read the full article here
