Why 73% of Americans Say Homeownership Is Out of Reach—Is Your Dream Home at Risk?

SALT LAKE CITY (KUTV) — A recent report from Bankrate reveals that nearly 75% of Americans are unable to afford a home, a staggering statistic that reflects a growing crisis in the nation’s housing market. For many young people, the dream of achieving success through homeownership is slipping further out of reach.

“That's kind of a big part of life. I don't think I'll be able to buy a home in the next five or ten years at least, which is pretty aggravating for myself and a lot of my peers,” shared Jackson Hilker, who aspires to become a homeowner someday. His sentiment encapsulates the frustrations felt by many in his generation.

Real estate experts agree that while homeownership is increasingly difficult, it is not entirely impossible for those who take the right steps to prepare. According to Realtor.com, households in Utah must earn nearly $169,000 annually to afford a three-bedroom home. Hilker describes these figures as “quite ridiculous,” noting that few people his age earn enough to meet these benchmarks.

Economists highlight that the gap between income and home prices is widening. Dejan Eskic, Chief Economist for the Salt Lake Board of Realtors, stated, “To purchase as a first-time home buyer, no.” He elaborated that roughly 9 out of 10 renters cannot afford the median-priced home in Utah. The surge in monthly mortgage costs over recent years illustrates this challenge. In 2021, the average mortgage payment for a new purchase stood at approximately $1,500 per month, but that figure has now skyrocketed to about $3,500.

Looking ahead, Eskic predicts the housing market in Utah will not undergo significant changes by 2026. “It's pretty similar to what we saw this year. Not significant shifts, either up or down,” he said. Although interest rates have decreased, they remain relatively elevated. Eskic expects a higher availability of homes by 2026, which could provide buyers with more options. “There's a lot more supply, you're not getting 40 offers on a house, so it's not as competitive a market,” he explained.

In light of these challenges, mortgage experts advise potential buyers to focus on their budgets rather than waiting for rates to return to the pandemic lows. Braxton Mora, a senior mortgage loan officer at Kai Mortgage, cautioned that the 3% rates seen during the pandemic were an anomaly that should not be expected again. He recommended that buyers concentrate on what they can realistically afford each month, saying, “It's a very good idea to start planning around payment. What does my family life look like? What is that payment going to look like? How is that going to impact me?”

As of 2025, Redfin reported that the median home price in Utah was about $578,000. This combination of rising home prices and stagnant wages continues to affect the ability of many Americans, especially young people, to realize homeownership dreams.

In summary, the current state of the housing market presents formidable challenges for would-be homeowners in Utah and across the country. With a significant portion of the population unable to afford homes and mortgage costs soaring, the dream of homeownership is increasingly seen as an elusive goal. It raises important questions about the future of housing affordability and accessibility in America.