Americans’ confidence in the housing market continues to decline, making homeownership increasingly out of reach for millions. According to a new Gallup survey, less than a third of non-homeowners expect to buy a home in the next five years, a historic low.
Fewer renters believe homeownership is attainable
The survey, conducted from April 1-14, found that 62% of Americans currently own a home, while 34% rent. These rates have remained steady in recent years but still fall short of the 70%+ ownership levels recorded before the 2008 housing crash.
Among non-homeowners, only 30% believe they will purchase a home within the next five years. An additional 23% expect to buy within the next 10 years, while 45% see no path to homeownership in the foreseeable future. In contrast, surveys between 2013 and 2018 showed that at least 41% of renters planned to buy a home within five years.
This shift highlights growing concerns about affordability and long-term stability in the housing market.
Housing costs remain a major barrier
For many renters, high costs present the greatest obstacle to homeownership. About 68% say they cannot afford to buy a home or do not have enough for a down payment. In 2013, only 45% of renters cited financial barriers.
Other factors keeping renters from buying include:
- High property taxes
- Poor credit scores
- Volatile job markets
- Unfavorable local housing conditions
In fact, very few renters view leasing as a lifestyle choice. Only 11% say they rent for convenience, while just 1% cite downsizing due to age. The vast majority remain locked out of the market because of financial reasons.
Pessimism about buying a home persists
Public opinion on the housing market remains bleak. About 72% of Americans say it is a bad time to buy a home. Only 26% view it as a good time. Although slightly better than the record lows of 2023 and 2024, these figures contrast sharply with the decades before 2022, when positive views of homebuying dominated.
In 2003, for example, 81% of Americans believed it was a good time to buy a house. Even during the 2008 financial crisis, optimism never dropped below 50%. However, recent years have brought historic inflation, surging home prices, and rising mortgage rates, reshaping public sentiment.
Political and regional divides shape outlook
Political affiliation influences how Americans view the housing market. In 2025, 33% of Republicans said it is a good time to buy a home, up from 18% a year ago. Meanwhile, Democrats (20%) and independents (26%) show little change from last year.
Regionally, residents of the Eastern U.S. remain the most optimistic about rising home values. About 69% of Easterners expect home prices to climb, compared to between 51% and 57% in other regions. The South and West saw the sharpest declines in price expectations, falling 17 and 16 points respectively.
Fewer Americans expect prices to rise — but challenges remain
Overall, 57% of U.S. adults expect local home prices to rise over the next year. That figure has dropped from 68% in 2024 and from a record-high 71% in 2021.
The drop in price expectations suggests some cooling in the market. However, the combination of elevated home values and high interest rates continues to lock many out of homeownership. Even as price growth slows, affordability challenges show few signs of easing.
What happens next for the housing market?
The American housing crisis shows no signs of immediate resolution. Although some indicators suggest a slightly less overheated market, the reality remains grim for many prospective buyers. Home prices are still well above pre-pandemic levels, and mortgage costs remain elevated.
While real estate continues to rank as Americans’ top long-term investment, fewer believe they will ever afford to participate. Bridging the gap between aspiration and reality will require both market adjustments and policy innovation.