Press Release: USMI’s 2024 Homeownership Market Survey

October 24, 2024

Despite Perceived Obstacles Due to Home Prices and Interest Rates, 2024 National Homeownership Market Survey Reveals Increased Importance of Homeownership and Critical Role of Low Down Payment Mortgages

WASHINGTON — U.S. Mortgage Insurers (USMI) today released its 2024 National Homeownership Market Survey that finds nearly 8 in 10 Americans (78%) believe owning a home is very important (which is 6% higher than USMI’s 2021 National Homeownership Market Survey). The chief reason Americans believe owning a home is important is the stability it provides, followed by it being a good investment. Meanwhile, 58% believe it is getting harder to buy a home, a perception primarily driven by higher home prices and interest rates. ClearPath Strategies fielded USMI’s 2024 National Homeownership Market Survey of nearly 1,200 adults in the U.S., which included oversamples of African American, Hispanic, and Asian respondents. The National Homeownership Market Survey was conducted by USMI to take a pulse of the housing market and perceptions of homeowners, future buyers, and renters alike across socioeconomic and racial strata. This survey is an update from USMI’s 2021 research.

“The data show that those who will help drive the rate of homeownership up in the U.S. see the down payment as their biggest challenge,” said Seth Appleton, USMI president. “However, the data also show that while mortgage insurance is recognized as helpful in breaking down this barrier, there is low awareness that three and five percent down payment mortgages are as widely available as they are. Everyone in the ecosystem should help to raise awareness about low down payment options that sustainably expand access to affordable mortgage financing,” Appleton continued.

USMI’s consumer-facing low down payment mortgage education website is www.LowDownPaymentFacts.com

“This research shows that Americans want to own homes, but many find it difficult for various reasons including some that reflect a lack of knowledge around down payment requirements,” said David Bluestone, Founder and Partner of ClearPath Strategies. “Renters who want to buy soon and minority survey respondents identified the inability to save for a down payment and the lack of affordable housing as top barriers to homeownership. There is an acute need for greater awareness of low down payment options and how private mortgage insurance helps to overcome the perceived large cash down payment obstacle,” continued Bluestone.

Key findings from the 2024 National Homeownership Market Survey include:

  • Owning a home is viewed as more important now than a few years ago: nearly 8 in 10 Americans (78%) believe owning a home is very important (which is 6% higher than 2021).
    • 70% of Black respondents, 75% of Hispanic respondents, 85% of Asian respondents, and 81% of White respondents say it is very important to own a home.
    • The most important reasons for owning a home? It provides stability, is a good investment, and it provides safety for me and my family.
  • Despite the increased importance of homeownership, a majority of adults believe it has gotten harder to buy a home in the last few years.
    • 65% of current renters (compared to only 25% of recent first-time buyers – a whopping 40% difference) believe it has gotten harder to become homeowners.
    • 58% of all adults perceive it has gotten harder to buy in the last few years.
  • The main reasons respondents believe it has gotten harder to buy a home: higher priced homes (81% say so) and higher interest rates (71% say so).
  • However, when asked about the top challenge they will face when buying a home, many cite an inability to afford a down payment.
    • 28% of all adults selected “unable to afford a down payment” making it the top pick overall, followed by “economic and personal uncertainty.”
    • Renters selected “unable to afford a down payment” as the biggest challenge, as did African American respondents.
  • Meanwhile, adults overall also don’t know much about down payment requirements, with only one-third aware that it is possible to qualify for financing with only 3 or 5 percent down.
    • Down payment requirements are not well known, with 44% either not knowing what is required or mistakenly believing a 20% or more down payment is necessary to purchase a home.
  • Private mortgage insurance (MI) is seen as beneficial to Americans. The top two reasons selected by Americans are:
    • #1 Reason – MI allows for down payments as low as 3% (31% ranked as top).
    • #2 Reason – MI increases low income families’ access to homeownership (25% ranked as top).
    • Nearly half of African Americans (48%) and Hispanics (49%) who said it had gotten harder to buy a home agreed that “MI makes it easier for lower and middle income individuals to purchase a home by decreasing initial down payment costs.”

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U.S. Mortgage Insurers (USMI) is dedicated to a housing finance system backed by private capital that enables access to housing finance for borrowers while protecting taxpayers. Mortgage insurance offers an effective way to make mortgage credit available to more people. USMI is ready to help build the future of homeownership. Learn more at www.usmi.org.