Home prices recently hit a new record high, as surging mortgage rates have made the dream of home ownership the stuff of fantasy.
Home prices increased 5.9% year over year in May, slightly down from 6.4% the previous month. The S&P CoreLogic Case-Shiller index showed that home prices rose in 20 major metro markets.
“All 20 markets observed annual gains for the last six months,” Brian Luke, head of commodities, real and digital assets at S&P DJI, said in a press release, as reported by the New York Post. “The last time we saw that long a streak was when all markets rose for three years consecutively during the COVID housing boom.”
It’s no wonder, then, that a new CNN poll finds that many renters in the U.S. believe they will never be able to afford a home. Fox Business reports on the results of the poll. Here’s the start of the story:
A majority of current renters in the U.S. say they can’t afford to buy a home, with over half of Americans saying that they are pessimistic about ever achieving their goal of homeownership, per a new CNN poll.
CNN’s study found that 86% of current renters in the United States can’t afford to buy a home as one hallmark of the American dream drifts increasingly out of reach for thousands of families.
“Buying a home is absolutely something we would love to do,” 39-year-old father Brent Bjornsen told CNN Business. “It seems out of reach.”
“We’re straddled with seemingly insurmountable debt,” Bjornsen said. “Home ownership seems impossible … and that hurts for two kids of Baby Boomers and feels like a disappointment.”
CNN reporter Matt Egan said Monday that of poll respondents who can’t currently afford to buy a home, a majority are extremely doubtful that they will ever be able to purchase one.
“Fifty-four percent say it’s not too likely or not at all likely that they’ll ever be able [to buy a home],” Egan said.