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Among those hoping to buy a home in the next few years, affordability of monthly payments (69%), the right size of the home for present and future needs (39%), and an ideal location for their family (37%) are key priorities. However, 56% of respondents believe they would be denied if they applied for a mortgage at present.
“Potential buyers are looking for alternatives to traditional mortgage financing or are stuck waiting for a reprieve from the rising rates and prices that keep so many of them renting and locked out of homeownership,” said Adena Hefets, co-founder and CEO of Divvy Homes.
“There are so many factors putting downward pressure on a potential homeowner’s buying power – high interest rates, a lack of supply, increasing cost-of-living – that the starter home seems to be on the verge of extinction.”
The survey also revealed concerns among renters, with 47% worried about rising home prices before they can afford to buy. Additionally, “throwing money away on rent” (46%), uncertainty about long-term housing stability (41%), and the impact of rising interest rates (34%) were identified as the biggest drawbacks to not owning a home.
“The traditional mortgage process was designed in the 1940s when the norm was a single breadwinner with a steady W-2 income. The system hasn’t changed, even though the way we work, live and form families is dramatically different. But today’s younger buyers often lack long periods of income history and are increasingly non-salaried, working as a 1099 contractor, gig worker, or self-employed individual,” Hefets said.
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