Saving for a down payment is the main roadblock for aspiring home buyers, according to a semi-annual survey on 20 major metro regions by online real estate marketplace Zillow. Almost two-thirds (67.9%) of respondents nationwide said so.
Millennial renters (69.2%) were more likely to report down payment woes compared to those from Generation X (68.5%) and Baby Boomers (64.3%). But millennials also expressed the most confidence on being able to afford a home someday.
Down payment struggles were also the top concern among all income brackets. This was most prevalent among those in the middle-income bracket (70.4%).
More women (72.2%) than men (62.2%) cited down payment difficulties as a barrier, according to the survey. But both genders noted down payment affordability as a barrier more than any other factor.
Owning a home is an important part of the American Dream for 66% of the respondents. Some 72% said that “owning a home increases their standing in the local community.”
Nine in 10 said they were confident that they can afford their current home and stay there as long as they wanted. Those in Atlanta and Detroit were the most confident, followed by Phoenix and St. Louis.
Qualifying for a mortgage (53.2%) was the most common barrier after saving for a down payment, followed by debt burdens (50%) and job security (38.5%).
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