Renters cite hefty downpayments and pricey mortgages as largest barriers to homeownership
SEATTLE, Dec. 20, 2024 (GLOBE NEWSWIRE) -- With home prices on the rise for years, young adults across the Pacific Northwest have found homeownership to be increasingly out of reach. A new poll by PEMCO Mutual Insurance shows that 81% of respondents agree that Gen Z and Millennial adults are far less likely to own a home than previous generations.
The poll of Washington and Oregon residents highlights a drastic increase in this mindset since 2020, when just 68% shared the same sentiment four years ago. A number of factors could be attributed to this drastic increase, including a lack of affordable housing, persistent inflation and stagnant wages.
Current homeowners agree that they would find themselves in a similar boat to today's renters - more than a third of respondents (38%) reported they would not be able to purchase the home they own for what it's worth in today's market.
Does this mean the prospect of owning a home is dying out in the Pacific Northwest? Well, not necessarily. A majority of respondents (65%) reported that they are likely to own a home one day, a theme that's consistent across both metro and suburban areas. Regardless of where they live, though, adults under 35 are the most confident with 75% of respondents believing they are likely to own a home one day, followed by the 35-54 group at 65%, and the 55+ age group at 47%. Young adults being the most confident in their ability to own a home in the future is consistent from the poll's 2020 findings, too.
"Homeownership is an evolving landscape, and the path to it has become more complex for younger generations. While factors like affordability and shifting priorities are key, it's important to remember that it may not be the right choice for everyone,” said Jennifer Hawton, spokesperson for PEMCO. "It's clear that young adults have adopted a more flexible lifestyle, with the rise of remote work allowing many to bring in a full-time income from virtually anywhere. That could be a significant reason that young adults don't want to feel tied to one place and instead, opt to remain renters. Whatever the case, we love that young adults in the Pacific Northwest are as confident in themselves as we are in them.”
As for those who currently rent, 73% of residents said the downpayment on a house is what's stopping them from purchasing a home. Likewise, 59% said the monthly mortgage payments are also a major barrier in becoming a homeowner. Both numbers have risen significantly since PEMCO last asked in 2020 (55% and 51%, respectively).
For a complete summary of PEMCO's proprietary poll results visit www.pemco.com/blog/nw-polls, where you'll find responses collected by Qualtrics in July 2024.
About the PEMCO Insurance Northwest Poll
PEMCO Mutual Insurance commissioned this independent survey, conducted by Qualtrics, that asked Washington and Oregon residents questions about attitudes toward current Northwest issues. The sample size, 420 respondents in the Seattle Metro (King, Snohomish, Pierce Counties) region, 402 respondents in the Portland Metro (Multnomah, Marion, Clackamas, Washington Counties), and 383 respondents in the Spokane area (Spokane and Stevens Counties) yields an accuracy of +/- 5.0% respectively at the 95% confidence level. In other words, if this study were conducted 100 times, in 95 instances the data will not vary by more than the associated error range.
About PEMCO Mutual Insurance
PEMCO Mutual Insurance has been serving the Pacific Northwest for 75 years. PEMCO provides auto, home, renters, and boat coverage. We are honored to have been recognized as a Best American Insurance Company by Forbes Magazine based on customer feedback. We distinguish ourselves through award-winning customer service, industry expertise, and social impact programs focused on supporting youth and education; building greener environments; and increasing risk awareness and safety. To learn more, visit www.pemco.com.
CONTACTS:
Jennifer Hawton
PEMCO Mutual Insurance
206.628.5773
Kristi Herriott
Firmani + Associates Inc.
206.466.2702