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Study finds nearly 40% of homeowners don’t believe they could afford their home if buying today

May 3, 2024, 11:47 AM

(KSL TV)...

(KSL TV)

(KSL TV)

SALT LAKE CITY — A new study shows nearly 40% of U.S. homebuyers don’t believe they could afford their home if they bought it today.  According to Redfin News survey, 3,000 residents were asked “if you were looking to purchase a home, do you think you could afford a home like yours in your neighborhood today?”

Of those asked, 42.1% of respondents said they “definitely could” or “probably could” afford it while 38% said they “definitely could not” or “probably could not” afford their current homes and 19.9% were unsure if they could afford it.

The survey noted that the current median U.S. home sale price is at $420,000, double from ten years ago.

The study said 59% of homeowners who responded to the survey have lived in their home for at least 10 years and another 21% have lived in their home for at least five years, which means they have witnessed the skyrocketing prices since they purchased.

Surging home prices prevent people from moving and contribute to the mortgage-rate lock-in effect since nearly all homeowners have a mortgage rate below today’s rates. This means even if people are interested in moving, like an empty-nester couple wanting to downsize for example, statistics are showing that many are not moving because housing costs are not conducive.

The jump in prices may cause many to question their ability to ever own a home. Another survey found that 40% of U.S. renters believe they’ll never own a home, which is up from 27% from a year ago. When asked the reason they felt they’d never own a home, most cited “lack of affordability” (44%) the next most common reason was “ability to save for a down payment” (35%).

Utahns are not exempt from the housing crisis. KSL TV recently reported on a survey of top issues impacting Utah voters that found Utahns are fed up and priced out when it comes to housing affordability.

In the Beehive state, there have been major price increases and demand for housing outweighs supply. A study ranked Utah the No. 5 worst state to find a starter home. And recently Governor Spencer Cox to announce a $155 million plan to build more starter homes with a goal of 33,000 new starter homes in Utah by 2028.

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Study finds nearly 40% of homeowners don’t believe they could afford their home if buying today