Most renters can’t buy a home and half have given up all hope, new poll shows

The American Dream is on life support, and the housing market may be pulling the plug, according to a new CNN poll.

CNN found that a staggering 86% of renters report they cannot afford to buy a home in the current market. Even more troubling, 54% percent think they’ll never be able to afford one.

“That really speaks to a lot of pessimism here about the American dream, how it feels like it's out of reach," said CNN’s Matt Egan.

“They want to buy, but they just can’t not with these prices, not with these mortgage rates. Some of them are throwing in the towel and walking away.”

The poll also identified the biggest hurdles to homeownership.

Nearly half of renters (40%) say saving for a down payment feels impossible, while 31% point to high interest rates. 17% struggle to qualify for a mortgage.

Younger Americans can’t afford a home, but have more hope

Young Americans are feeling the housing crunch more acutely than their older counterparts. The poll found 90% of renters under 45 say they'd like to buy but can't afford it, compared to 79% of those over 45.

For 39-year-old father Brent Bjornsen, the dream feels increasingly distant.

"It seems out of reach. We're straddled with seemingly insurmountable debt. Homeownership seems impossible ... and that hurts for two kids of Baby Boomers and feels like a disappointment,” he told CNN Business.

Jeremy Andersson, a 40-year-old father of twins, feels the same.

"I'm not going to pay $350,000 for a run-down house. It almost seems laughable," Andersson said. "I'm not going to play your game anymore. I'm done."

But it's not all doom and gloom for the younger crowd.

Despite the tough market, they're holding onto hope a little tighter. 53% of those under 45 believing they'll eventually be able to buy, versus just 32% of those 45 and older.

Is the American Dream fading?

It doesn't help that starter homes aren't starter prices anymore. Zillow data shows the number of cities where typical starter homes cost at least $1 million has nearly tripled in five years, from 84 to 237.

It feels like the end of an era for some.

Only 32% of current homeowners in the CNN poll—including those earning six figures—believe they could afford a similar home in their neighborhood today.

"Homeownership remains the ticket to wealth generation. So this is just widening the gap between the haves and have-nots," said Egan.

Despite these challenges, homeownership remains central to the American Dream for many.

The CNN poll found that the majority of respondents, or 70%, consider owning a home essential to achieving the American Dream, including 65% of current renters.

Whether its a dream or a delusion is still up in the air. A recent Pew Research survey found that while 53% still believe the American Dream can be achieved, a sobering 41% feel it is now out of reach.