According to new data released by rental startup Zumper, the dream of homeownership continues to be out of reach for many people. A survey of more than 6,000 of its users (renter) showed that some don’t even consider buying a home as being an important part of said dream.
Still, even though only 71% of those surveyed agreed with the statement that the “American Dream” involves homeownership, 89.9% of them indicated that they intended to buy a home eventually. The intention to buy was highest among millennials between the ages of 20 and 29, 94.4% of whom stated they plan to buy a house, while only 70.2% of renters between 50 and 59 years of age expressed the same sentiment.
Despite the high proportion of renters who expressed wanting to buy a home, the reality is that many are not yet able to afford the cost of a down payment in the city that they currently live in. The findings note that the sample size skews younger than the general population and that many people move out of the city before they buy a home, but the gaps between percentage of hopeful homeowners and those able to afford a place in various cities were still significant.
For example, in Los Angeles and San Diego, the discrepancy was the highest: 89.9% and 91.5% of renters in L.A. and San Diego want to own a home, but only only 22.8% and 20%, respectively, could afford a mortgage.
What else did the survey find? Well, for one, the majority of millennials—62% of renters surveyed by Zumper, who, again, skew younger and are concentrated in the nation’s largest cities—are still living with roommates.
Take the data with a grain of salt: As Zumper acknowledges, its findings “may be impacted by various biases due to the differences between our user base, usually younger with a higher concentration in cities.”
But the results are still relevant—and not even very surprising—because many of us already know firsthand that our desire to own a home does not necessarily fall in line with our ability to purchase one any time soon.