(Credit: 4 PM production/Shutterstock)
NEW YORK — Are rising prices killing the American dream? A new survey finds soaring housing prices are causing Americans to rethink their “dream home” and “dream workspace,” where luxury is out and practicality is in.
The poll of 2,000 U.S. adults found that 58% have witnessed increased housing costs over the past five years, and 39% frequently feel like they’re stuck living where they are. Many are also concerned about the affordability of housing (50%), crime (40%), and making home repairs (35%).
Commissioned by Built, the construction and real estate finance technology company, and conducted by Talker Research, the study found Americans currently spend a quarter of their monthly income on housing but would ideally like to spend 19%.
The average prospective homebuyer would need mortgage interest rates to be lowered down to at least 4% before they consider moving to a new house, and 42% would likely consider moving if they were incentivized by a destination’s local programs to buy or build a home there.
Today, 43% of Americans polled rent their homes, while 57% own their homes. Nearly half (49%) of renters said they prefer renting, though 47% said they’d like to own a home someday — 17% of whom would like to own a home within the next 18 months.
In fact, one-third frequently think about their “dream home,” as well as their “dream workspace.”
“Rising costs are causing people to really rethink what’s actually important to them,” says Tanner Dieterich, head of owner and contractor relations at Built, in a statement. “If you look back just a few years, people wanted pools and home theaters.”
“Now, data shows they prefer practicality—a minimalist approach that still ensures a good quality of life. But for that to happen, we need to address what’s preventing people from moving in the first place.”
The survey also found exactly what Americans are looking for in an ideal home and workspace, given the new era of hybrid work models and the increasing cost of living.
The ideal “dream home” is an average of 2,402 square feet, with 69% of respondents preferring a single-family dwelling over a multi-family building, condo, or townhouse. Americans also want simple, practical features and amenities like central air conditioning and heating (68%), easy-to-access laundry appliances (55%), a yard or green space (55%), and nearby local amenities (54%).
This beat out more “traditional” ideas of luxury living — having a pool (37%), professional-grade cooking equipment and appliances (32%), manicured landscaping (32%), gym (29%), home theater (28%), greenhouse (24%), and au-pair suits (15%).
A large majority of remote workers (88%) and office workers (71%) agree their workspaces should make them feel comfortable. Whether it’s at home or in an office, a “dream workspace” has ample natural sunlight (61%), space (55%), and parking (25%).
If a commute is required, people want features they wouldn’t otherwise have at home, including natural light (40%), nearby restaurants and cafés (33%), quiet rooms (33%), dedicated or assigned working spaces (32%), and break rooms (31%). In other words, an office ought to provide what a home office cannot.
With so many dream list items to cross off, it’s not surprising that Americans are yearning for greener pastures. The study found that currently, more than one in five people (22%) would give where they live an “A” grade, and 18% would give their place of work a “B” grade. Both the home and the workplace earned a “B” for amenities and features, however (21% and 19%, respectively).
“Almost 50 percent of people aspire to homeownership — yet, affordability and available housing remain the primary obstacles,” Dieterich explains. “Once these issues have been addressed, individuals can begin to truly envision their ideal homes and workplaces.”
Survey methodology
Talker Research surveyed 2,000 general population Americans; the survey was commissioned by Built and administered and conducted online by Talker Research between July 4 and July 8, 2024.
