Only 12% of consumers think they could easily save a 20% downpayment to buy a house, according to a new poll from the National Foundation for Credit Counseling.
About one in five said they’d need a mortgage that allowed a much lower downpayment, while 17% thought they’d have to borrow the downpayment money no matter how much is required.
Half the respondents said they’d never be able to save enough money for a downpayment. “Since prices for homes are at historic lows, the necessary downpayment represents a lower dollar amount than would typically be necessary. Nonetheless, consumers still do not feel capable of meeting the requirements,” said Gail Cunningham, spokesperson for the NFCC.
The numbers suggest that consumers are reconciled to satisfying their housing needs through renting, even though in some markets it can be more affordable to buy a home than rent. While demand for rentals increased, so did the cost of renting.
Although renting has many advantages, it may not stimulate the economy as much as an uptick in the housing market would, as renters do not typically spend as much on home improvements, lawn equipment, appliances, or other areas which would lead to job growth, Cunningham said.
Source: NFCC Financial Literacy Opinion Index