The excitement of the search – or the slog for some – has turned into defeat for roughly one in six aspiring home owners who have given up over the past five years.
Some 16% folded their tents because they could not find a place that fit their needs or could afford, according to a new Bankrate survey. Notably, nearly three in 10 (28%) of the people who gave up because the price of houses in their areas was the most important issue when deciding whether to purchase a place.
Across generations, Bankrate found that 22% of Millennials ages 29 to 44 are the most likely to have shut down their searches. Some 17% of Gen Xers ages 45 to 60 quit, as did 12% each of Gen Zers ages 18 to 28, and Baby Boomers ages 61 to 79.
The cost of housing in their areas is the most important factor cited across generations, genders and income brackets. Some 28% or more than one in four cited cost as the primary reason they called it quits.
“Affordability is at its worst level in decades,” said Bankrate Financial Analyst Stephen Kates “The punishing combination of high home prices, low supply, and high mortgage rates has caused one in six home shoppers over the past five years to give up completely.”
The high cost of housing also is weighing heavily on current owners. Just 21% said cost was the main issue in determining their interest in purchasing another place. Six percent said they had designs on a new house but gave up because they could not find anything better or affordable.
The pessimism shown by would-be buyers also spreads to how they feel about achieving their financial goals. Overall, 39% say their generation has fewer financial opportunities than those that have gone before them. But there are divides among the age groups.
For example, more than half of Gen Zers (54%) and nearly half of Millennials ( 48%) say they have fewer financial opportunities than their older cohorts, compared to 38% of Gen Xers and 22% of Boomers who say the same.
Some would-be buyers are more optimistic, though. Seven percent are still actively shopping, either searching for houses in their area or attending open houses. Here, Gen Zers are the most likely to be on the prowl, with 9 percent saying they are actively looking.
