As the 2026 homebuying season gets underway, a new report reveals deepening pessimism among U.S. consumers. Nearly two-thirds of survey respondents (62%) now believe purchasing a home this year is “unrealistic,” a sharp jump from 49% in 2025, as high costs and limited inventory continue to freeze the market.
The findings, released this month by IPX1031, a Fidelity National Financial subsidiary specializing in real estate exchange services, paint a bleak picture of buyer sentiment, with the data indicating that the cultural significance of owning a home is eroding under financial pressure.
According to the report, 46% of respondents say they no longer view homeownership as the “American Dream” — a significant increase from the 33% who held that view just a year ago. Faced with rising prices and the mortgage rate “lock-in” effect keeping current owners put, half of those polled expect the real estate market to decline further in 2026.
The report, based on a survey of 1,003 adults conducted in December, highlights the specific financial hurdles sidelining potential buyers. While mortgage rates remain a focal point, they are part of a broader affordability crisis.
According to the data, aspiring buyers cite rising home prices (39%) and general affordability (30%) as their primary barriers to entry. Interest rates ranked third, cited by 18% of respondents as the main reason they cannot buy. The report notes that other anxieties, such as market instability or career uncertainty, were cited by fewer than 5% of respondents, reinforcing the notion that the freeze is driven primarily by the math of affordability.
This financial strain appears to have stalled long-term planning for many. In a sign of resignation, only 32% of respondents said they are actively saving for a downpayment. This stands in contrast to the 2025 report, which noted a higher sense of urgency among buyers.
Consumer confidence in the real estate sector has hit a new low. When asked about the year ahead, 50% of respondents said they expect the real estate market to decline in 2026. Strikingly, only 14% anticipate any improvement in market conditions.
