In a new national survey of renters, almost everyone dreams of home ownership, but affording it is not an option for many.
In Dallas, 97 percent of respondents claimed they want to own a home, but only 63 percent of those individuals could afford a mortgage in the city. The survey of 6,000 renters was created by Zumper, an apartment rental search company.
“The main contributing factor to this discrepancy seems to be that home values in Dallas are outpacing wage growth,” said Tanguy Le Louarn, head of data science at Zumper. “Various for sale reports in the Dallas area show an increase in home prices around 10 percent in the last year, some even report up to the mid double digits. Meanwhile, the Dallas Fed report recently stated that there has been a slow down in wage growth as higher paying jobs are being lost to lower paying ones—Dallas wages cannot keep up with the increasing home values.”
In fact, in a third of the surveyed cities, under half of renters earned enough income to qualify for a mortgage.
Interestingly, even though almost everyone surveyed wanted to buy, only 71 percent of respondents believe that the “American Dream” involves homeownership.
“While almost everyone wants to own a home at some point, the fact that only 71 percent of our respondents believe that the ‘American Dream’ involves homeownership highlights a potential shift in mentality of how this ideal can be achieved,” Le Louarn said. “While owning a home tends to be a good financial investment, it does not seem to be the end goal for as many people as it used to. Right now, homeownership is at its lowest ever and the renter population only continues to increase, especially among Millennials.”