Survey: Half Of Middle-Income Americans Feel Homeownership Is Not Required For Financial Prosperity

The elevated cost of housing has created new considerations of homeownership by middle-income Americans.

According to a new survey published by Santander Holdings USA Inc., 81% of middle-income respondents said the high cost of housing is a major financial issue, with half of the respondents (51%) believing homeownership is not a requirement to be financially prosperous – in comparison, only 27% of respondents believed it was.

Among respondents who lived in rental housing, six in 10 believed having an affordable home – even if it was a rental – was more important to achieving financial prosperity than having equity in a home.

Nearly three-quarters of the middle-income respondents (72%) reported seeing prices rise in the second quarter of this year and four in five (78%) considered inflation to be a major concern. The vast majority of respondents (90%) said they made spending cuts in at least one area to cope with the current inflationary environment, with four in 10 reporting they took on a second job or side gig in the last 12 months to help make ends meet.

But despite these challenges, eight in 10 middle-income households (77%) said they were current on their bills and 72% believed they were on the right track toward financial prosperity.

“While current economic conditions remain challenging, American households are showing great resiliency by taking the necessary actions to navigate through inflationary pain points,” said Tim Wennes, CEO of Santander US, a subsidiary of Madrid-based Banco Santander, S.A. (NYSE: SAN).

The survey was conducted by Morning Consult on behalf of Santander US and polled 2,202 adults in May. The survey defined the “middle-income” range of roughly $50,000 to $148,000.