NewsNation

Americans: It’s the worst time ever to buy a home

(NewsNation) — Americans are feeling historically bad about the housing market, and most expect prices to keep rising over the next year.

Just 21% of people say it’s a good time to buy a home, tied for the lowest level on record, according to a new Gallup survey.


The latest reading is equal to last year’s historic low, which marked a significant drop from 2021 when 53% of people thought it was a good time to buy.

The pessimism comes as market conditions have soured in recent years, with prospective home buyers facing a perfect storm of elevated mortgage rates, rising prices and limited supply.

Most of those surveyed — nearly 70% — expect prices in their area to go up over the next year, Gallup found. That’s a higher share than a year ago when roughly 56% felt the same.

The findings come as more Americans brace for interest rates to stay higher for longer following several hot inflation reports and indications from the Federal Reserve.

After cooling to 6.6% in January, the average rate on a 30-year mortgage hit 7.2% last week, the highest level in five months.

Nowadays, buyers need to make $114,000 a year to afford the typical U.S. home, according to a recent Redfin report. In higher cost-of-living areas like San Francisco and San Jose, California, households need to bring in almost $400,000 to afford a home.

Despite regional cost differences, Gallup’s survey found the majority of Americans across the Midwest (66%), East (68%), South (68%) and West (70%) all expect prices in their area to go up in the coming year. Rural (63%), city (69%) and suburban (70%) residents were similarly pessimistic.

Housing costs now rank second behind only inflation as the most important financial problem facing American families, according to Gallup. Adults under 50 were especially likely to say housing costs were their top concern.

The latest results are from Gallup’s annual economy and personal finance survey, which was conducted April 1-22.