New research from Experian reveals that a significant portion of U.S. renters remain optimistic about their prospects of homeownership despite persistent barriers in the housing market.
According to the study, 47% of current renters believe they will be ready to purchase a home within the next four years, with that figure rising to 67% when the timeline is extended to eight years.
Younger demographic groups, particularly Gen Z and millennials, reported the highest levels of homeownership optimism. Nearly 48% of Gen Z non-homeowners and 50% of millennial non-homeowners indicated they expect to be in a position to buy a home by 2029.
The research was released against the backdrop of notable developments in mortgage underwriting tools, including the recent Federal Housing Finance Agency (FHFA) approval of VantageScore 4.0 for mortgage decisions. The modern scoring model incorporates alternative data, such as rental payment history, which can benefit renters with limited credit histories who consistently pay their bills on time. Experian was the first major credit reporting agency to include positive rent payments in its credit reports, and it operates the largest U.S. rental database.
“As an industry, we have an important role to play in helping close the homeownership gap and making the dream of owning a home a reality for more consumers, including current renters and younger Americans who represent a powerful segment of future homeowners,” said Michele Bodda, president of Experian Housing, Verification Solutions and Employer Services. “With the adoption of modern tools powered by Experian’s world-class data assets, including positive rental payments, we can take meaningful steps toward making homeownership more attainable to more consumers more of the time.”
Despite the optimism, the research also highlights persistent challenges. Saving for a downpayment (67%), high home prices (66%), and low credit scores (51%) were cited as the foremost barriers to purchasing a home. Additionally, nearly one-quarter of renters reported being denied a mortgage or rental application due to their credit score.
Renters identified the most useful support on their homeownership journey as financial assistance (61%), a clearer understanding of what they can qualify for (51%), and improved financial knowledge (38%).
The report suggests that, while challenges remain, renters are actively considering homeownership and seeking tools and education to strengthen their financial profiles and readiness for the mortgage process.
