Bankrate’s 2025 Home Affordable Price Survey shows that buying a home moves it even more out of reach for many Americans, but its appeal is growing. That’s up from 78% in 2024.
Bankrate conducted several surveys last year on voting agency Yougov Plc, catching up with the country’s changing opinions on home buying. In each poll, Bankrate looked into topics such as over 2,000 Americans over the age of 18 regretting their homes being affordable and homeowners buying from their homes. The resulting data are weighted to represent all American adults, shedding light on Americans’ struggle against the high costs of homeownership.
For example, almost two-thirds of US adults (64%) say they are willing to make sacrifices to buy a home. These trade-offs include downsizing or moving to another state.
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An important part of homeownership in the American Dream for most people
Homeownership and the associated security have historically been considered part of America’s dreams. A 2025 Home Affordable Price Survey shows that 82% of US adults say they think they are part of America’s dreams.
XERS and baby boomers are most likely to believe that home ownership is part of the American Dream (84% and 89%, respectively). Gen Zers (78%) and millennials (74%) also place a high value on homeownership. Both cohorts say it outweighs other characteristics of economic success.
“Americans believe homeownership is the cornerstone of the American Dream. “This belief remains unshakable, and despite increasing the affordable challenges at a record percentage of Americans, 82%, they’ve only become stronger despite citing homeownership as part of their American dream.”
Over three-quarters of non-home owners show affordability
Our 2025 Home Affordable Research Survey shows that most US adults (83%) don’t own a home but want to curb the reasons associated with affordability. Specifically, they cite not having enough income (59%), home prices are too high (55%), and not being able to afford down payments and closing costs (46%). (Respondents can choose from multiple factors.)
“With household budgets already tense due to rising inflation and so many Americans are sending their salaries to pay, it’s no surprise that aspiring homeowners are not making enough income, high home prices and unable to pay down payments and closure costs as key obstacles for homeowners,” says McBride.
Generation Xers, who don’t own a home but want to say they’re in too much debt, say it’s preventing one person from buying (20%) compared to 17% of millennials, 12% of Gen Z and 13% of baby boomers. General Zers (42%) who don’t own a home but hope that they are the most likely generation that they say they are not ready yet.
Nearly two-thirds of Americans will make changes to more affordable housing
64% of Americans would be happy to do something to find a more affordable home. A 2025 home affordability survey found that many people will be willing to reduce their living space (29%) or move away from the state (24%). Some are far from family and friends (19%) or willing to buy fixer uppers (18%).
For most generations, the best sacrifice for more affordable housing is miniaturized. This is cited by 26% of baby boomers, 32% of Gen Xers and 29% of millennials. The exception is General Zers. Zers generally say they are willing to move out of state (32%).
“We’re moving out of state where we’re far from family and friends, or each with its own additional costs and are preventing us from searching for affordable homes,” says McBride.
Down payments and closing costs still pose challenges
According to a 2025 down payment survey, more than four in five buyers said a 1-2 punch in the down payment and closing costs was in the way. 52% call disability “very important” and 29% call it “somewhat important.”
Of those who are not blocked by down payments and closure costs, 8% describe the cost as “not very important,” while 2% say “it’s not important at all.”
Aspiring homeowners don’t expect them to be able to save enough
For some aspiring homeowners, the challenges seem insurmountable. According to the 2025 down payment survey, which remains the same as the 2025 survey, 20% say they can save enough on a down payment at home.
Meanwhile, 12% say they need it for more than 10 years. 9% say they need 7-10 years. 11% say it takes 5-7 years. 20% say it takes 3-5 years. While only 4% expect to expect adequate savings within a year, 11% say they have sufficient savings within a year or two.
Separately, according to the latest down payment survey, 22% of adults across the United States say they can’t afford to buy their dream home. Among the age cohort, 29% of Generation X (ages 45-60) say they cannot afford a dream home, followed by 24% of millennials (ages 29-44), 20% of Gen Z (ages 18-28), and 18% of infant boomers (ages 61-79).
Americans are a little optimistic about the housing market
40% of Americans believe that the 2025 down payment survey is down from 42% in the 2024 survey.
Among other housing market headwinds, over two in five (42%) say buyers need excellent credit to get a mortgage, while 41% believe that mortgage rates will continue to rise in the near future. Meanwhile, 18% say rent is cheaper than owning a home.
Current homeowners got there through intentional savings
Our 2025 down payment survey shows that when asked how they thought of down payments and closing costs in their first home, 44% of current homeowners said they were specifically saved for that purpose. A smaller subset (17%) said they used first-time home buyer grants or loan assistance programs, with 15% saying they received financial gifts from family and friends. Meanwhile, 10% said they found an additional source of income, 8% said they had taken money from their retirement savings, and 6% said they sold personal items such as jewelry, electronics, cars and more.
In a survey last year, only 41% of owners credited their savings, 14% reported receiving gifts from family and friends, and 9% said they tapped their retirement savings.
Regret about buying a home is common and especially high maintenance costs
A 2024 Homeowner Regret Survey shows that when looking back on home purchases, regretful homeowners most commonly cite maintenance and other hidden costs more expensive than expected (40%) (40%). Other regrets include buying too few homes (18%), buying a home in a bad place (15%), overpayments/pays too much (14%), mortgage payments too much (13%), too big for the home (10%) or not getting the best mortgage rate (10%) (10%).
Note: Respondents can select multiple responses. Percentage is one of those who regret buying a current home.
sauce: Bankrate Survey, April 15-17, 2024
If the chance comes, more than two in three homeowners will buy a home again
Despite regrets, a 2024 homeowners regret survey found that most American homeowners (69%) will buy their current home if they have to start over again. Another 19% of American homeowners said they would not buy their current home again, while 13% said they didn’t know.
Young Americans like General Zers tend to be happy with their home buying decisions. Over 76% of Gen Z homeowners (77%) and more than 65% of Millennial homeowners say they have to buy their current home, compared to 65% of Gen X homeowners and 66% of baby boomers.
Note: The percentage is among US homeowners.
sauce: Bankrate Survey, April 15-17, 2024
Conclusion
If you are the first home buyer to decide to buy this year, there are a few options, even if you’re not saving. Check your state housing finance agency to see if you qualify for a down payment and closing fee loan or grant. Several major banks and nonprofits also offer down payment help.
Buying your first home can be scary, but there are options that will help you achieve this big step on your financial journey.
