- The latest Zillow Housing Confidence Index survey revealed that millennials (65%), people of color (63%-70%) and those older than 65 (64%) are the demographics most likely to associate homeownership with the American Dream.
- Among people of color, Hispanics (70%) are the group that values homeownership the most, followed by Asians (64%) and blacks (63%), whereas only 60% of white respondents felt it was important, according to Zillow.
- The real estate site said millennials and Hispanics in particular are adding to the overall confidence in the housing market, which has increased to a confidence index reading of 66.9.
Zillow said that high rents and sluggish incomes are making homeownership difficult for many potential buyers, particularly millennials who are renting and living at home longer. Millennials, people of color and older Americans, however, will play a vital role in making sure the market remains stable down the line, according to Zillow.
"The American Dream is really about opportunity, which means a lot of things to a lot of different people. For young Americans and Americans of color, the opportunity to own a home is a big part of that dream," Zillow Chief Economist Svenja Gudell said in a release. "These Americans represent the next generation of U.S. homeowners, and for homeownership to eventually become a reality, it has to start as a dream."
While rising rents might prohibit potential homeowners from being able to save for a down payment, a recent Redfin survey found that those skyrocketing monthly payments are primary drivers in the decision to buy a home.
However, the confidence of respondents in the Zillow survey contrasts that in Fannie Mae’s January Home Purchase Sentiment Index, which revealed a 1.7% drop in consumer optimism from December. This dip was due to stagnant wages and rising home prices, according to Realtor.com.