Recent polling data released by Newsweek suggests that two-thirds of Americans believe that the dream of home ownership is increasingly beyond the reach of the middle class, due in large part to escalating housing prices.
The poll, conducted by Redfield & Wilton Strategies on January 18, surveyed 1,500 eligible voters in the US. When asked whether the National Realtors Association’s median sales price of nearly $388,000 was affordable for a middle-class family, 66% of respondents answered with a firm “no”.
These findings suggest that there is a significant gap between expectations and reality when it comes to purchasing a home in the US. Many Americans feel that the median cost of a house is actually lower than what the market is currently offering, reflecting the frustration and disillusionment experienced by those seeking to enter the housing market.
Several factors contribute to the current state of the housing market, including elevated mortgage rates, expensive homes, and a lack of available inventory. These issues have created significant barriers to entry for millions of Americans, particularly in the middle class, for whom home ownership is often seen as a builder of wealth and a platform for financial well-being.
The National Realtors Association has observed that the median asking price for an existing home in December was $382,600, a year-over-year increase of 4.4%. Unfortunately, existing home sales fell to their lowest level in nearly three decades on an annual basis, with prices continuing to rise for the sixth consecutive month.
One of the primary reasons for the high cost of homes is the limited supply of available properties for sale. Many homeowners are reluctant to put their homes on the market, as they hope to retain them at the low rates they secured and avoid entering a mortgage market characterized by costly home loans.
