(NewsNation) — It has long been seen as part of the American Dream to own a house.
But for many right now, owning your home is unattainable.
Dan, a Chicago financial adviser, says he has no interest in buying property right now.
“My brother just recently bought, and he got low rates at the peak of COVID, but the rest of my friends are renting,” he said. “That’s why I rent, 100%. Housing prices combined with mortgage rates are too high.”
It’s a common scenario when right now, the median average cost of a home is nearly $360,000, the average 30-year fixed-rate mortgage is more than 6.5% as of this week and high inflation remains an issue in the U.S.
Meghan Nash says she’s getting married soon, but owning a home is just not in the cards.
“I was kind of looking to buy, but I’m continuing to rent because that is how it goes,” she said.
The U.S. Census Bureau says the number of Americans in households making more than $150,000 who are still renting rather than owning grew by 87% from 2016-2021. That’s 3 million people.
However, Nashville realtor Tyler Henson says home ownership is one of the greatest wealth-building tools in America.
“It is always going to go up in time,” Henson said.
To renters’ defense, housing prices jumped more than 12% since March 2020, which is a rate increase most Americans can’t afford.
Since more wealthy Americans are renting, it means rent prices will likely continue to soar.
“It means that we have to budget carefully and not go out as much as we’d like to and do some things that we’d like to do, but it is what it is,” Nash said.