Gallup Poll: Is The Bubble Over? Majority No Longer Believe in the Homebuyer American Dream

Between skyrocketing mortgage interest rates, record-high home prices, and a limited housing supply, millions are being priced out of the American Dream.

For the first time, the majority of Americans do not believe that buying a house is a wise decision.

The country has never been more pessimistic about becoming a homebuyer, with only 30% of survey respondents to a recent Gallup poll saying that now was a good time to buy into the housing market.

That is down 23 points from a year ago and the lowest on record. Perhaps more significantly, it is the first time since the poll began in 1978 that most Americans agreed that it is a bad time to buy a house.

Is the Housing Bubble Over?

While this certainly shouldn’t be taken as sign that there’s a crash on the horizon, the results aren’t good for homebuyers.

Rising Interest Rates

As home prices began to creep up after the initial panic of the COVID-19 pandemic in 2020, interest rates set new lows seemingly every month.

With the new normal of working from home and the increased time spent in the house, Americans began searching for housing that met their pandemic-era needs.

Inflation

What was initially considered transient inflation – the temporary aftershocks of the post-pandemic economic recovery – has settled into the highest year-over-year inflation rates in four decades.

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