Only 21% of U.S. adults think it is a good time to buy a house, according to Gallup’s Economy and Personal Finance poll. Down 9 percentage points from last year’s prior recorded low, the 2023 and 2022 readings are the only times that less than half of respondents thought the housing market was good for buyers in Gallup’s trend since 1978. This is a stark difference from 2003's recorded high of 81%.
The poll, conducted between April 3 and 25, also measured thoughts on housing prices. In 2021 and 2022, roughly 70% predicted local home prices would increase over the next year, the highest since 2005.
As home prices have begun to fall in certain markets, fewer Americans this year expect home values to increase in their area. For 2023, 56% think prices will increase, 25% believe prices will stay the same, and 19% think prices will fall.
Regionally, Midwesterners (45%) are less likely to predict that home prices in their area will increase over the next year, while 55% of Western residents, 61% of Southern residents, and 62% of Eastern residents do. Additionally, town or rural dwellers are less likely to predict home prices rising (45%) than those in the cities (64%) and suburbs (57%).
Compared with 2022, Midwestern, Western, and town/rural residents post the greatest drops in percentage points when asked about local value increases, each dropping 21 percentage points or more.
Gallup says the negative sentiment toward home buying is likely due to high prices and interest rates. However, Americans still regard home purchases as the best long-term investment over stocks, gold, and other options, according to the poll.
