Many Americans Think Winning Lottery Is The Only Chance To Buy A Home

Many Americans Think Winning Lottery Is The Only Chance To Buy A Home

When the Federal Reserve dropped interest rates to zero, mortgage rates dropped, too.

A housing market boom ensued.

Housing prices have rapidly increased since 2020.

Some families believe winning the lottery is the only way they will ever own a home.

(NewsReady.com) – In 2020, the Federal Reserve dropped the interest rate to zero in order to spur growth. That paved the way for record-low mortgage interest rates, leading to a housing market boom. In December 2020, the 30-year fixed mortgage rate was just 2.68%.

While mortgage rates were incredibly low, people began purchasing homes at an astonishing pace. That drove the prices up as people, many of whom were suddenly allowed to work remotely, moved. While it was great for some people, others were priced out of the market. Now, they believe their only hope of ever owning their own property is dependent on gambling.

A Dollar and a Dream

Divvy Homes contracted OnePoll to conduct a survey on its behalf. The pollsters spoke to 2,000 people who aren’t currently homeowners to find out if they believe they will own homes one day. The results found only 53% of those polled think they will be able to purchase a house one day.

The pollsters asked the respondents what they thought they’d have to do to purchase a home. A shocking 40% answered that they would have to win the lottery. About one in four (26%) respondents said they would have to inherit money from someone, and 19% said they would have to marry rich.

Some respondents believed practical solutions would put them on the right path. For instance, 50% said they just needed to improve their credit score, 33% cited paying down existing debt, and 34% said they needed a promotion at their job.

Housing Market

A quick glance at the housing market explains why some people don’t think they will ever have the opportunity to become homeowners. The average home price in the US was $436,800 in the first quarter of 2023. Meanwhile, the average annual wage for people between 25 to 34 years old is $52,936 and for people between 35 to 44 years old is $63,596. The average rent is $1,995 per month or about one-third of the average person’s income.

Couple that with the average car payment ($716 per month or $8,592 annually), groceries which cost about $300 per month for a single person ($3,600), plus utilities, medical insurance, car insurance, and all of the other small expenses people pay every month, there is little room to save for a home.