NEW YORK, NY — For many renters, owning a home no longer feels like a realistic next step. In the latest CNBC/SurveyMonkey quarterly survey, 34% of renters said they want to buy someday but believe they will never be able to afford it.
That sense of discouragement shows up across age groups. Among renters ages 18 to 34, 35% gave that answer, almost the same as the 36% of renters ages 35 to 64 who said the same thing.
Mortgage rates are squeezing buying power for would-be owners
A major drag on affordability is the cost of borrowing. The survey was taken Sept. 28 through Sept. 30 among 982 U.S. adults, when the average 30-year mortgage rate was about 7.56%, according to Mortgage News Daily.
That was the highest level in three years, and it remained at that same level as of Wednesday afternoon. Higher rates make monthly payments more expensive and force many buyers to aim lower on price, increase their down payment, or rethink the purchase altogether.
Thomas Ravert, a certified financial planner with Pathway Capital Corp. in New York, said mortgage rates directly reduce what buyers can afford. He noted that first-time buyers are hit especially hard because they usually do not have equity from a prior home to roll into the next purchase.
Home prices and down payments have climbed sharply since 2020
Borrowing costs are only part of the problem. Home prices have moved much higher over the past several years, adding another barrier for households trying to save enough cash to get started.
The National Association of Realtors said the median existing-home sale price reached $429,100 in August 2026, up about 38% from $310,600 in August 2020. On that price, a traditional 20% down payment would come to $85,820.
Ravert said the financial hurdle goes beyond the down payment and monthly mortgage bill. Closing costs, property taxes and insurance can add a meaningful amount to the total cost of buying and owning a home.
Most renters still want a home, but many say the math does not work
Even with those obstacles, most renters still hope to buy eventually. The survey found that 87% say they want to own a home at some point.
The problem is figuring out how to get there. More than half of renters, 52%, said they cannot afford a down payment. Another 47% said their income or credit score is too low to qualify for a mortgage, and 42% said mortgage rates are too high.
Those numbers suggest the challenge is not just one thing. For many households, the barrier is a combination of cash savings, underwriting standards and the monthly payment that comes with today’s rates.
First-time buyers are a smaller share of the market than they used to be
The pressure on renters is also visible in the broader housing market. First-time buyers made up just 21% of buyers in 2025, according to the National Association of Realtors, a record low in data going back to 1981.
Before the 2008 financial crisis, first-time buyers typically accounted for about 40% of the market. That long decline points to how much harder it has become for renters to move into ownership without existing home equity or large savings.
Ravert said the payment on a new home can force buyers to settle for a less expensive property, put more money down or accept a much larger monthly bill. For many would-be owners, that tradeoff makes the decision more difficult than it once was.
Renting can still make financial sense for households that are not ready
Not every renter is trying to become a homeowner. The survey found that 22% say they never plan to buy a home.
For those households, renting can offer real advantages, including flexibility if a move is needed and relief from major repair bills. Homeowners have to budget for maintenance, property taxes and homeowners insurance in addition to the mortgage payment.
Ravert said renters should not rush into buying if it would significantly raise their housing costs. A home purchase only works if the household can comfortably carry the full monthly cost of ownership, he said.
Advisers say to save for a target and keep building wealth meanwhile
For renters who do want to buy someday, financial planners say the goal is easier to manage when it is broken into steps. Corinna Rose, a certified financial planner with Bell Investment Advisors in California, recommends setting a down-payment target and creating a realistic savings plan.
Rose also encourages people to keep building wealth through retirement accounts and brokerage accounts while setting aside money separately for a future home purchase. That way, progress does not depend on one single milestone.
Her message is that homeownership is only one path to financial stability. As she put it, people should not wait to buy a home before starting to build wealth.
Owning a house is not the only measure of financial progress
Rose and Ravert both pushed back on the idea that renting is automatically a setback. A renter can be making solid financial choices even without owning property, especially if buying would stretch the budget too far.
At the same time, homeownership can still help households build equity over time. The key, advisers say, is matching the choice to the family’s finances rather than treating buying as a universal deadline.
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