More than half of U.S. renters don’t see themselves ever owning a home, according to a recent survey from Credit Karma — a daunting statistic, considering homeownership remains a key driver of household wealth. The survey of 1,008 U.S. adults, conducted by Qualtrics on behalf of Credit Karma between Oct. 21 and Oct. 31, revealed Americans were primarily uncertain about their homeownership prospects due to high mortgage rates and an increased cost of living, with mortgage rates having more than doubled over the past year and consumer prices up 7.7% in October compared to the same month a year earlier, Credit Karma said.
(It’s worth noting that rates have dipped since the survey period: As of Dec. 1, the average 30-year fixed-rate mortgage rate was 6.49%, compared to the 6.94% rate seen on Oct. 20.) Renters also reported they were holding off on purchasing a home over concerns of a potential recession or job security. Ultimately, 54% of respondents said they didn’t believe they could ever afford homeownership, according to Credit Karma. Tenants may also be struggling to save for a down payment on a home, as the national median rent has increased by 21% since March 2020 despite an overall cooling in the rental market in recent months, according to Apartment List. Fifty-six percent of respondents said they spent a majority of their income on rent, Credit Karma said; 37% said they were sacrificing groceries, bills and utilities to cover their housing payments; and 22% said they couldn’t afford their rent at all. Yet 65% of the respondents who were in the market to purchase a home said they wanted to buy because their rents were so high, …