Gallup: Half of non-homeowners plan to buy home in 5 years

By Allen Cone  |  May 8, 2017 at 11:54 AM
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May 8 (UPI) -- Almost half of U.S. adults who don't own a home say they plan to buy one within five years, according to a Gallup survey.

The 49 percent figure, which includes 10 percent who plan to buy a home within the next year, is a 8 percentage increase from last year's survey, according to Gallup. An additional 20 percent of respondents say they plan to buy a home in six to 10 years. That leaves just 28 percent who plan to remain as renters or in other housing arrangements.

Gallup interviewed 502 non-homeowners from March 9-29. The margin of error is 5 percentage points.

The poll findings reflect a recovery from the housing downturn in 2008. Barriers to ownership include income, down payment and affordable housing.

Earlier, Gallup reported 61 percent of Americans say housing prices will increase in their area in the next year, the highest percentage since 2005. This poll sample includes non-homeowners interviewed for their beliefs in future purchasing.

"Some of the shortfall in housing supply can be made up by new construction, which might indicate a construction boom is on the horizon, if not already underway," Gallup's Jeffrey M. Jones said. "But if real estate demand continues to outpace real estate supply, home prices will continue to rise and could rise beyond what most Americans can afford. To the extent that happens, many would-be homeowners may not be able to achieve their goal of owning a home."

The percentage of Americans planning to buy home varies by age.

Among respondents from 18-34, 83 percent plan to buy a home in 10 years, compared with 66 percent for those in the 35-54 age range and 30 percent of those 55 years and older.

Southern residents hopes of buying a home within five years is above the national average and for Eastern residents it is below the average.

On the flip side of ownership, 64 percent responded they don't believe they will sell their home in the foreseeable future, including only 4 percent in the next year. In 2013, 66 percent said they didn't plan to sell in the foreseeable future.

Among those who plan to sell, 49 percent responded they will buy a smaller or less expensive home. This compares with 44 percent four years ago. Among those planning to buy a bigger or more expensive home, it was 29 percent this year and 32 percent in 2013. In both time frames, 13 percentage said they will rent a new place to live.

Gallup found older homeowners planning to sell are more likely to plan to buy a smaller or less expensive house but younger owners plan to move up in size and price.

Interviewed were 352 homeowners who plan to sell a home. The margin of error is 5 percentage points.

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