Homeownership has become America’s biggest sacrifice

Owning a home remains central to the American dream — yet that dream is slipping further out of reach. With prices still high, mortgage rates near record levels, and inflation straining budgets, saving feels harder than ever. Many Americans are delaying milestones, moving back home, or taking on extra work just to get by.

New research from Raisin and 8Acre Perspective finds that 93% of Americans have made sacrifices to save for a home, and many worry they may never achieve it. Others who already bought fear they’ve stretched too far. The study also finds that small but smarter financial choices, not just more sacrifice, could be the key to bringing homeownership within reach faster.

Homeownership rates have fallen to their lowest levels since 2019, and affordability is at record lows. Housing supplies remain tight and although interest rates are starting to come down, they remain too high for most aspiring homebuyers.

Americans are being forced to make unfavorable decisions in order to chase their homeownership dreams:

• Choosing between goals: 52% of aspiring buyers said they’re prioritizing saving for a home over saving for retirement.

• Working overtime: 1 in 4 people said they took on multiple jobs to save more money for a down payment.

• Moving back home: Nearly 28% of Gen Zers said they moved in with family or lived with a roommate to lower housing costs.

• Delaying milestones: 18% of Americans said they’ve delayed major life events, including weddings or having children, to save more.

These sacrifices illustrate how much homeownership means to the average American, even as affordability feels further out of reach.

For those who did save enough and were able to buy homes, is homeownership all it’s cracked up to be? 

During the pandemic when mortgage rates hit record lows, Americans rushed to buy homes – but now, the financial reality of homeownership may be setting in:

• 38% of respondents say homeownership has hurt extra dollars for things like travel, dining and subscriptions.

• 25% of Americans say homeownership has hurt their ability to save for retirement.

• 46% of homebuyers who purchased homes in the last four years stated that they fear they bought more house than they can handle.

• 24% of respondents say that the impact on monthly expenses has been greater than expected.

While people often view homeownership as a financial win and long-term wealth builder – the most common benefit homeowners report isn’t financial gain, but peace of mind. 

While the financial realities of homeownership can be complex, the psychological and emotional benefits are tangible, and may be why so many are still pursuing the dream of homeownership.

Most Americans save for a down payment through traditional bank accounts: 57% of people use standard savings accounts and 56% rely on checking accounts. 

Yet surprisingly, nearly one in four aspiring homebuyers are holding cash outside the banking system, such as “under the mattress” — and Gen Z leads the trend. Over 30% of Gen Zers report keeping cash out of banks, compared to just 20% of Millennials and Gen Xers.

The biggest driver? Distrust of banks — with 32% of Gen Z globally saying they distrust financial institutions.

But this behavior is costing them. Cash loses value over time, especially with inflation near 3%. Only 23% of Americans use high-yield savings accounts (HYSAs) for their down payments, and just 14% use certificates of deposit (CDs), despite average yields exceeding 4%.

Simply moving idle cash into a yield-bearing account could help aspiring homeowners outpace inflation and accelerate their savings goals.

While the current economy may be challenging, there’s a reason to be optimistic. With the Fed having cut interest rates for the first time since 2024, aspiring homebuyers may have an important window of opportunity. Mortgage rates may start to come down, and savings account yields may still remain high. 

Savers can accelerate their progress by taking advantage of current high yield savings rates, accelerating their financial gains (and potentially sacrificing less). By shifting from low-interest accounts to high yield savings accounts, CDs or money market accounts, homebuyers may be able to shave years off the amount of time needed to accumulate enough for a down payment.

Our study found that most Americans would feel confident buying a home once mortgage rates fall to 3–4%. As that horizon comes into view, building savings strategically now could position buyers to act when the market becomes more affordable.

Americans are doing everything they can to save for a home, from taking extra jobs to moving back in with family and delaying major life plans. But the path forward isn’t just about sacrifice. It’s about strategy.

By taking advantage of today’s higher-yield savings opportunities, Americans can make their money work harder, potentially saving years of effort.

While homeownership may not be the same financial win it once was, it is still deeply important. By empowering consumers with access to smarter savings opportunities, Raisin can help turn today’s sacrifices into tomorrow’s homeownership reality.

This study was commissioned by Raisin, a secure, one-stop saving marketplace. The study was conducted amongst a national sample of 1000 US consumers, ages 18-60, who were either homeowners (purchased home in past seven years) or likely buyers (planning to purchase a home in the next seven years). Data was collected in August of 2025. This research was conducted on behalf of Raisin by 8 Acre Perspective, a recognized leader in financial services marketing research.

The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.