Just 13% of Homeowners Say Buying a Home Is Achievable in Current Market

Why It Matters

The findings signal a growing reliance on home‑equity financing, reshaping revenue streams for lenders and boosting the residential renovation market.

Key Takeaways

• 13% of homeowners view buying a home as achievable now
• 44% prefer renovation over moving in next few years
• 71% plan home‑improvement projects within two years
• Rising mortgage rates above 6% dampen mobility
• Home‑equity loans become primary financing tool for many

Pulse Analysis

The Citizens survey paints a stark picture of today’s housing landscape. With mortgage rates hovering around 6%—a level that now exceeds low‑rate, sub‑3% loans from the pandemic era—buyers face a steep cost barrier that includes higher down payments, closing fees, and inflated price tags. Coupled with a compressed inventory, these factors have left only a small fraction of owners confident they can purchase another home. Consequently, many are re‑evaluating their financial strategies, opting to stay put and extract value from their current properties.

Home‑equity products are emerging as the logical bridge between affordability and aspiration. By leveraging the built‑in wealth of their homes, owners can finance renovations, consolidate higher‑interest debt, or even fund major life expenses without the need to sell. This trend is reflected in the survey’s 44% renovation preference and the 71% of respondents planning improvement projects within two years. Lenders that can offer competitive home‑equity lines of credit or second‑mortgage solutions stand to capture a sizable share of this emerging demand, while also deepening relationships with existing borrowers.

Looking ahead, the market’s trajectory hinges on rate dynamics and inventory recovery. If rates ease modestly, the cost differential between staying and moving may narrow, prompting a gradual uptick in mobility. Until then, the renovation sector is likely to remain buoyant, and mortgage originators will need to integrate equity‑based products into their portfolios to sustain growth. This pivot not only supports homeowners navigating a tight market but also diversifies lenders’ income streams beyond traditional first‑mortgage origination.