Research shows that nearly 40% of homeowners don’t believe they can afford their home if they buy today

SALT LAKE CITY – A new survey shows that nearly 40% of American homebuyers don’t believe they could afford their home if they bought it today. According to the Redfin News survey, 3,000 residents were asked, “If you wanted to buy a home, do you think you could afford a home like yours in your neighborhood today?”

Of those surveyed, 42.1% of respondents said they “definitely cannot” or “probably cannot” afford it, while 38% said they “definitely cannot” or “probably cannot” afford their current home and 19, 9% weren’t sure they could afford it. It.

The study shows that the current average sales price of a home in the US is $420,000, double what it was a decade ago.

The research shows that 59% of homeowners who responded to the survey have lived in their home for at least ten years and another 21% have lived in their home for at least five years, meaning they have witnessed the skyrocketing prices since they made the purchase.

Rising house prices prevent people from moving and contribute to the lock-in effect of mortgage rates, as almost all homeowners have mortgage rates that are lower than current rates. This means that even if people are interested in moving, such as an empty nest couple looking to downsize, statistics show that many don’t move because housing costs are not conducive.

The price increase may cause many to doubt their ability to ever own a home. Another survey found that 40% of American renters think they will never own a home, up from 27% a year ago. When asked why they thought they would never own a home, most cited “lack of affordability” (44%). The next most common reason was “the ability to save for a down payment” (35%).

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

The Beehive State has seen large price increases and demand for housing exceeds supply. One study ranked Utah as the fifth worst state to find a starter home. And recently, Governor Spencer Cox announced a $155 million plan to build more starter homes with a goal of 33,000 new starter homes in Utah by 2028.