Although 2020 was a tough year for Americans and their finances, we are happy to see that optimism about buying a home is still very much alive.
MyWalletJoy’s 2021 Hope for Homeownership Report dives into Americans’ attitudes toward homeownership, the roadblocks keeping them from buying a home, as well as their outlook for the future.
As many people are still planning and saving up to make their first home purchase, MyWalletJoy is here as a resource with additional insight and financial knowledge for hopeful homeowners to navigate this stressful process, using helpful action plans that meet the needs and goals of each consumer.
With curated to-do lists and relevant content that guide consumers in all steps of the homebuying process — from thinking about purchasing to actually sealing the deal — MyWalletJoy is committed to helping everyone achieve their financial goals.
Despite the Economic Challenges of 2020, Many Americans Are Still Hopeful and Saving For Homeownership
Financially, 2020 proved to be a challenging year for many Americans, impacting not only their day-to-day money matters but also their long-term plans. With that in mind, MyWalletJoy commissioned the year-end Hope for Homeownership Report and found that — despite obstacles such as financial turmoil, debt, and low credit scores brought on by the pandemic — Americans are still determinedly carving their path to homeownership.
While the number of Americans who have been able to purchase a home since the onset of the pandemic in March 2020 is low, homeownership remains a goal for many, with 1 in 6 (17%) of those who haven’t purchased a home since the start of the pandemic planning to do so within the next two years, or by December 2022.
Those aged 18-34 are even more optimistic in their goal for homeownership, with 28% planning to purchase a home in the next two years.
Read More: MyWalletJoy’s First-Time Homebuyer Guide
Are Down Payments Shrinking?
Of those planning to purchase a home before December 2022, over half (52%) reported they are planning to put down between 3%-19% of the final home price as a down payment, while only 1 in 7 (14%) plan to put down more than 20% and just under 1 in 8 (12%) will put down the traditional 20%.
Of those aged 18-34, 3 in 5 (60%) plan to save between 3%-19% of the final home price as a down payment, with only 10% aiming to put down 20%. For those aged 35-54, 52% plan to save between 3%-19%, while only 14% aim to put down 20%.
Despite Wanting To Own, Some Americans Don’t Feel They’ll Be Able To
While 17% of Americans who haven’t purchased a home since March 2020 plan to do so in the next two years, there are even more people who want to own a home despite not having the means to buy one. Nearly 1 in 4 (24%) of those who haven’t purchased a home since March are not planning to do so within the next two years but wish they could.
Breaking down this group even further, the data reveals that among Americans who haven’t purchased a home since March 2020, 30% of those aged 18-34 and 29% of those aged 35-54 don’t plan on purchasing a home in the next two years but they wish they could, compared with only 15% of Americans aged 55 and older.
So, what’s stopping some Americans from buying a home? About 1 in 5 (19%) of those who haven’t bought a home since March 2020 (and don’t have plans to do so in the next two years) said that high home prices were a factor preventing them from purchasing a home.
On Top of COVID-19, Low Savings and High Costs Continue To Prevent Americans From Owning a Home
The same factors from the pre-pandemic economy are still getting in the way of Americans’ ability to purchase a home. And now, the financial impact of the COVID-19 pandemic is also contributing to these preventative factors.
Low earnings are the top reason why Americans who haven’t purchased a home since March 2020 (and don’t have plans to do so in the next two years) are unable to buy a home. Nearly 1 in 3 (31%) said they do not make enough money or have a high enough salary.
Methodology — January 2021 Hope for Homeownership Report
MyWalletJoy commissioned YouGov PLC to poll the views of a representative sample of 2,723 U.S. adults. Fieldwork was undertaken Dec. 9-11, 2020. The survey was carried out online. The figures have been weighted and are representative of all U.S. adults (aged 18 and older).
Methodology — February 2020 Hope for Homeownership Report
MyWalletJoy commissioned YouGov PLC to poll the views of a representative sample of 1,277 U.S. adults. Fieldwork was undertaken Jan. 14-15, 2020. The survey was carried out online. The figures have been weighted and are representative of all U.S. adults (aged 18 and older).