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Saving for down payment biggest obstacle to homeownership
Most renters want to become homeowners — 63% of renters surveyed by Zillow say they are confident they will qualify to buy a home (someday). But only 7% believe they will be able to buy in the next 12 months.
So what’s holding them back? According to the 10,000 people surveyed nationwide, the biggest obstacles are:
- saving for a down payment, cited by 68%;
- qualifying for a mortgage, cited by 53%;
- debt burden, cited by 50%;
- job security, cited by 39%;
- loss of mobility, cited by 20%; and;
- a lack of for sale inventory, cited by 11%. (Respondents were able to select more than one response)
These are national percentages. When looking at California, the down payment still ranks highest, with 67%-70% of respondents across the state naming it the biggest obstacle to homeownership.
However, the lack of inventory proves to be of larger concern to Californians than to residents of other states, cited by 16%-21% of residents in California’s largest metropolitan areas, compared to 11% of respondents nationwide.
Further, while 7% nationwide plan to buy in the next year, Californians are less optimistic. The percent of renters surveyed claiming to be able to buy in the next 12 months was just:
- 6% in San Jose;
- 5% in San Diego;
- 4% in Los Angeles; and
- 2% in San Francisco.