Survey: 38% of U.S. renters believe they will never own a home

April 12 (UPI) -- Expensive home prices and soaring mortgage rates have nearly two in five U.S. renters believing that they will never own a home because of the overall cost, according to a new survey released by Redfin Friday.

The survey found that 38% of renting respondents said they will never own a home is up sharply from 27% in 2023.

Of the more than 3,000 respondents, 1,000 said they were renters in 2024.

Some 44% of the renters who said they don't believe they will own a home cited that the homes on the market currently are too expensive. After that, 35% said they could not pay for a down payment, followed closely, by 33% who cited high mortgage rates and 32% pointing to.

An additional 14% said they are not interested in owning a home.

The Mortgage Bankers Association weekly report released on Wednesday said purchase applications were down 5% to its lowest level since February with the 30-year-fixed rate increasing to 7.01%, the highest in more than a month.

"Mortgage rates moved higher last week as several Federal Reserve officials reiterated a patient posture on rate cuts," said Joel Kan the MBA's vice president and deputy chief economist. "Inflation remains stubbornly above the Fed's target, and the boarder economy continues to show resiliency.

"Unexpectedly strong employment data released last week further added to the upward pressure on rates."