That lack of affordability is why “reaching the American dream is becoming extra now not easy than ever,” Monetary institution of The US (BofA) analysts wrote in its eighth annual millennial housing gape printed on Friday.  

“By nearly every measure—rents, residence costs, passion rates—this community expects to pay extra for housing even as it already takes up one-third of their family profits,” BofA analysts realized. 

Nevertheless, two-thirds of the gape’s respondents are gentle role on procuring a home and impart they’ll likely accomplish so accurate by the next two years, despite already spending around 30% of their profits on housing (rent or a mortgage). Partly for the reason that respondents quiz housing costs, love rent, residence costs, and mortgage rates to head up even additional from right here. Millennials also cited procuring as a ethical investment. BofA’s gape respondents incorporated over 1,000 millennials between the ages of 25 and 41, with moderate family incomes concentrated in the $25,000 to $75,000 vary. 

“Whereas some Millennials would possibly also in actuality feel motivated to aquire a home soon to uncover before fee will increase, others would possibly also absorb out of the housing market resulting from affordability challenges, particularly if rent moderates,” wrote the BofA analysts. (Analysts at BofA quiz nationwide residence costs to flatten and rent progress to moderate over the arrival yr).

Millennials that said they weren’t planning to aquire homes had been most desirous about affordability, particularly with the leap in mortgage rates. Over the last three years, respondents agree with cited affordability as a dispute of affairs, on the opposite hand, this yr’s gape confirmed “a discipline fabric leap,” wrote BofA analysts. 

Curiously ample, 82% of the gape’s respondents reported seeking to aquire older, much less costly homes and renovate them as antagonistic to aquire a newly built residence. As Fortune’s currently reported, millennials are paying hundreds and hundreds of bucks to knock down homes—however for positive these are affluent millennials that aren’t as inviting on affordability. Nevertheless this merely speaks to the generation’s creativity in residence procuring.  

On the opposite hand, extra millennials are owners than ever before, and each yr BofA runs the gape the percentage of millennials which will likely be owners has gone up. This yr’s gape, 58% of respondents said they owned their residence, up from fifty three% last yr. Of these, 64% of millennials ages 31 to 41 said they owned their residence. Meanwhile, easiest 51% of these ages 25 to 35 reported being owners.

From Fortune’s old reporting, it’s positive that there’s variation amongst millennials and homeownership. To illustrate, Fortune’s interviewed some excessive-earners, or better than moderate, which will likely be gentle renting because they don’t in actuality feel love they’ll win the money for to aquire a home in the markets they live in. 

From a official couple earning around $225,000 living in Los Angeles to a alternate proprietor earning over $200,000 on her comprise, living in New york, in each cases these millennials had been opting to rent, citing several barriers to residence ownership.

Aloof, in step with BofA analysts, the gape “suggests a somewhat better homeownership payment for Millennials overall than basically the most popular Census Bureau data, which confirmed that 51.5% of Millennials had been owners as of 2022, indicating that our gape respondents would possibly also now not be representative of the broader U.S. Millennial inhabitants.”

Subscribe to Neatly Adjusted, our e-newsletter corpulent of easy strategies to work smarter and live better, from the Fortune Neatly group. Register this day.