Twenty-eight percent of aspiring homeowners cited home prices in their area as the most critical factor in decision-making
America’s housing market has pushed many buyers to their limits, with affordability now worse than it’s been in decades. Even though mortgage rates have eased from their highs, home prices are still elevated, keeping many would-be homeowners out of the market.
According to Bankrate’s 2025 Home Affordability Survey, 16% of Americans who set out to buy a home in the past five years have given up entirely, unable to find properties that fit their budgets or preferences.
“U.S. home affordability is at its worst level in decades,” Stephen Kates, a financial analyst at Bankrate, said.
“The punishing combination of high home prices, low supply and high mortgage rates has caused one in six home shoppers over the past five years to give up completely.”
More homeowners locked into higher rates
A new Redfin analysis found that nearly 20% of homeowners now have mortgage rates at or above 6%—the highest share since 2015. At the same time, just over half of homeowners have rates below 4%, down from almost two-thirds in early 2022.
The Bankrate survey found that nearly three in ten (28%) aspiring homeowners cited the price of homes in their area as the most critical factor in their decision to buy, far outweighing considerations like personal savings, job stability, or even the desire to stay in a particular location.
Younger buyers face the toughest road
Younger buyers are struggling the most. Fifty-four percent of Gen Z respondents believe older generations had better financial opportunities, and millennials are the most likely to have abandoned their home search, with 22% walking away in the past five years.
This echoes Truework's 2025 Recent Homebuyer Report. It revealed that the first-time homebuying process is proving more difficult for younger buyers, with 37% of Generation Z and 32% of millennials reporting the experience was more challenging than expected. Despite that, millennials still drive big share of mortgage inquiries despite affordability challenges, according to online lending marketplace LendingTree.
Brokers urge buyers to stay flexible
Benjamin Clark, broker-owner of Buyer Representation in Salt Lake City and president of the National Association of Exclusive Buyer Agents, echoed these concerns. “Prices have gone up significantly since Covid,” Clark said.
“Interest rates have gone up significantly since Covid. And buyers’ incomes have not necessarily gone up.” Still, Clark urged buyers not to give up hope, noting that “new buying opportunities are opening up as the housing market cools nationally.”
Only 7% of aspiring homeowners are actively shopping for a home, the survey found. Gen Zers are the most engaged, with 9% currently searching, compared to 7% of millennials and Gen Xers, and just 5% of baby boomers.
Similarly, Kurt Brandly of Greenside Capital told Mortgage Professional America that many buyes remain optimistic on the market and their chances of purchasing – if not now, then at some point in the near future.
“It takes a little bit more walking through what [buying] will look like and what the risks are so they can understand it,” he said. “I think first-time homebuyers, and millennials especially, are an extremely strong market.
“And we’re even starting to see it in Gen Z as well. Those two are extremely strong and we’re seeing more of them come to the market.”
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