Rising Home Prices and Interest Rates May Be Why Many Americans Feel Like Homeownership is Out of Reach

Key Takeaways 

• The survey finds that home affordability is the defining obstacle. High home prices and high interest rates are the top two financial barriers cited by prospective homebuyers in 2026, and nearly three-quarters say financial obstacles have already caused them to delay or reconsider buying, with first-time buyers feeling the pressure most acutely. 

• Desire for homeownership remains strong, especially among younger Americans. About 1 in 7 Americans plan to buy a home in the next 12 months, and those ages 18–44 are more than twice as likely as older adults to have near-term buying plans. One-third of those prospective buyers are entering the market for the first time. 

• Knowledge is power. More than half of Americans say they don't fully understand the homebuying process, and roughly 1 in 4 prospective buyers underestimate how significantly their credit score affects mortgage rates, a gap that credit education can help close. 

• The credit-building opportunity for renters. Half of renters are unaware that on-time rent payments can help build credit history, and nearly halfhave never asked their landlord whether those payments are being reported to the credit bureaus. 

Homeownership has long been one of the most significant financial milestones in American life — a marker of stability, independence and long-term wealth building. That aspiration remains strong in 2026, even as rising home prices and elevated interest rates have made the path to getting there more challenging for many prospective buyers. To better understand where Americans stand today, FICO commissioned a consumer survey with The Harris Poll during National Homeownership Month.  

The results of the FICO’s 2026 Homeownership Survey offer a candid look at a market in transition — one where desire is high but confidence is uneven, and where the right information and tools can make a real difference. Prospective buyers, particularly those navigating the process for the first time, are contending with a mix of economic pressures and knowledge gaps that can make homeownership feel further away than it actually is.  

The story the data tells is ultimately one of opportunity. Prospective buyers are motivated, engaged and hungry for tools that can help them move forward with confidence. And many of the challenges they face are ones they can actively work to overcome. The FICO® Score is a powerful part of that journey. Used by 90% of top U.S. lenders, it gives prospective buyers something invaluable: a clear measure of their financial standing, a benchmark to build from, and the confidence that comes from knowing exactly where they stand. Here is what the survey found.  

Americans Have Their Sights Set on Buying a Home   

Interest in homeownership has not disappeared — in fact, it is resilient among key segments: 

• About 1 in 7 Americans (15%) plan to buy a home in the next 12 months (referred to as prospective buyers) 

• Those ages 18-44 are more than twice as likely as those ages 45+ to say they plan to buy a home in the next 12 months (22% vs. 10%)  

  • One-third of Americans who plan to buy a home in the next 12 months (33%) are first-time homebuyers 

• More than half of renters who plan to buy a home in the next 12 months (52%) say they are first-time home buyers  

The near-term pipeline of homebuyers skews young and first-time. These are prospective buyers with strong aspirations but limited experience navigating the homebuying process and they stand to benefit most from clear guidance, accessible tools, and meaningful financial education. 

Homeownership Feels Out of Reach for Most Americans Who Don’t Currently Own 

Americans recognize independence and financial stability afforded by homeownership, but substantial proportions view it as out of reach. 

Americans attach deep meaning to homeownership: 

• 57% say owning a home represents independence 

• 53% say it represents financial stability 

• For first-time homebuyers specifically, the most common association is achieving a major life milestone (49%) 

Yet despite these aspirations, the gap between desire and perceived attainability is striking: 

• 62% of Americans who don’t currently own a home say homeownership feels out of reach for them today 

• 57% of first-time homebuyers feel the same 

The survey showed that the top home purchasing cost prospective homebuyers are concerned about is the downpayment (43%).  

High Home Prices and Rising Interest Rates Top Concerns  

The financial headwinds are concrete, and they are hitting first-time buyers hardest. 

• Nearly three quarters of prospective homebuyers (74%), and 85% of first-time homebuyers, say financial obstacles have prevented/are preventing them from buying a home this year 

• High home prices (34%) and high interest rates (33%) are the top two financial barriers to homeownership in 2026 for prospective homebuyers 

• About 3 in 4 prospective homebuyers (74%), and 84% first-time homebuyers, say financial obstacles have caused them to delay or reconsider their plan to purchase a home in the next 12 months 

  • High interest rates (32%) and high home prices (31%) are the top two financial barriers causing prospective homebuyers to delay or reconsider homeownership in the next 12 months  

  • Among first-time homebuyers, the top financial barrier causing delays/reconsiderations of homeownership in the next 12 months is high home prices (39%)  

• Rising interest rates have impacted more than half of Americans’ (51%), nearly three quarters of prospective homebuyers’ (73%), and about 4 in 5 first-time homebuyers’ (81%), decision to buy a home 

• Prospective homebuyers are most commonly looking at homes in different, more affordable areas (30%) or pausing home purchase plans (30%) due to rising interest rates  

The data makes clear that affordability is not a peripheral concern — it is the central obstacle shaping the decisions of the majority of prospective buyers, and more so for those entering the market for the first time. 

Consumer Confusion on the Homebuying Process and the Significance of the Credit Score  

Some of the most impactful changes prospective buyers can make start with closing a few key knowledge gaps. 

On understanding the homebuying process: 

• 59% of Americans say they don't completely understand the steps involved in buying a home 

• That figure rises to 64% among first-time homebuyers 

• Even among prospective homebuyers overall, half (50%) say they don't fully understand the process 

On credit score awareness and understanding: 

• 85% of Americans view credit score management as a wealth-building strategy, not just a borrowing tool 

• Yet about 1 in 4 Americans (24%) don't know their current FICO® Score 

• 84% of Americans say they understand how their credit score affects mortgage eligibility — but about 1 in 5 Americans (22%), including 1 in 4 prospective homebuyers (25%), underestimate how significantly credit score affects mortgage rates, believing it has minor or no impact, or saying they aren't sure 

On taking action: 

• 17% of prospective homebuyers have not taken any steps to improve their credit score ahead of a purchase 

• More than a quarter (26%) have not encouraged their co-applicant to do the same 

These numbers point to a meaningful opportunity. The mindset is right — most Americans already understand that credit health matters. Translating that belief into action, starting with something as simple as checking your FICO® Score, is a concrete and accessible first step that can set the entire homebuying journey in motion. 

Credit-building Opportunities for Renters 

For the many renters who make up a significant share of prospective first-time buyers, there is a widespread lack of awareness around how everyday financial behaviors, such as making rental payments, connect to their broader credit picture. 

• Nearly half of renters (47%) have never asked a landlord or property manager if their rent payments were being reported to the credit bureaus 

• More than half of renters (57%) either don’t know if their rental payment data (e.g., late payments, rental payment amount) is being reported to the credit bureaus by their landlord or property manager, or don’t believe it is 

• Half of renters (50%) are not aware that paying rent on time can help build a person’s credit score 

• 28% of renters say understanding how rent payments may impact credit history would make them feel more prepared to purchase a home 

The good news is that awareness itself can be a catalyst. For renters actively working toward homeownership, simply asking their landlord or property manager whether rental payments are being reported to the credit bureaus is an easy and concrete place to start. 

Enhancing Financial Literacy Helps Create a Path to Homeownership  

Perhaps the most encouraging finding in the survey is the clear appetite among prospective buyers for tools and information that can help them take action. The data suggests that education and access to the right resources can meaningfully shift both confidence and behavior. 

On what would make Americans and prospective buyers feel more prepared: 

• About a third of Americans (32%), and 34% of prospective homebuyers, would feel more prepared to purchase a home if they had a better understanding of down payment requirements.  

• 30% of Americans, and 42% of prospective homebuyers, say understanding how their credit score impacts mortgage eligibility would make them feel more prepared to purchase a home and similar proportions (31% of Americans, 39% of prospective homebuyers) say the same of knowing the steps they can take to improve their credit score  

• 68% of Americans, and 81% of prospective homebuyers, would be interested in a tool that allows them to see a real-time simulation of how specific financial actions (e.g., paying down debt, closing accounts, etc.) would impact their credit score and mortgage eligibility  

• 71% of Americans and 78% of prospective homebuyers say that if they could see such a simulation, it would cause them to change how they manage their finances