Rising home prices are shattering many Americans’ dreams of homeownership, prompting a reevaluation of their housing goals, according to a recent survey.
In today’s world, practicality often takes precedence over luxury, as the idealized vision of a home with a white picket fence—once emblematic of the American dream—becomes increasingly elusive.
A survey of 2,000 U.S. adults reveals that 58% have experienced a rise in housing prices over the last five years. Additionally, 39% feel trapped in their current residences. Major concerns include housing affordability (50%), crime rates (40%), and the expenses associated with home repairs (35%).
Currently, Americans allocate about 25% of their monthly earnings to housing expenses. Ideally, they aim to spend only 19%.
To encourage potential homebuyers to consider relocating, mortgage interest rates would need to drop to at least 4%. Additionally, 42% of individuals might be inclined to move if there were attractive incentive programs available at their desired location.
In a recent survey of Americans, 43% reported renting their homes, while 57% were homeowners. Nearly half (49%) of renters expressed a preference for renting, whereas 47% aspired to own a home in the future. Among those wanting to become homeowners, 17% aim to purchase a property within the next 18 months. Additionally, one-third frequently fantasize about their ideal home and workspace.
According to Tanner Dieterich, Head of Owner and Contractor Relations at Built, a company specializing in construction and real estate finance technology, “Increasing expenses are prompting individuals to reevaluate their priorities. Just a few years ago, features like swimming pools and home theaters were highly sought after.”
Recent data reveals a noticeable shift toward practicality in housing preferences. The latest survey indicates that the average ideal “dream home” size is approximately 2,402 square feet. Furthermore, 69% of respondents favor single-family homes over multi-family buildings, townhouses, or condominiums.
Most participants prioritized having central air conditioning and heating, easy-to-access laundry appliances, a yard or green space, and convenient local amenities when selecting their ideal home features. Features such as a pool, professional-grade kitchen equipment, meticulously maintained landscaping, a gym, home theater, greenhouse, and au-pair suites were less important to them.
In today’s remote and hybrid work environment, having a comfortable workspace is essential. According to a recent survey, 61% of both remote and office workers believe that their ideal workspace should feature ample natural light, 55% prioritize having enough space, and 25% consider convenient parking to be important.
When working from the office, people often seek amenities that their homes might not offer, such as nearby dining options like restaurants and cafés, quiet areas for focused work, dedicated workspaces, and break rooms for relaxation.
Dieterich noted, “Nearly half of people dream of owning a home, but challenges with affordability and housing availability are significant barriers. Once these hurdles are overcome, individuals will be better positioned to imagine their perfect homes and workspaces.”
The research was initiated by Built and carried out by Talker Research.
