What's the biggest obstacle to buying a home in Seattle? A new report explains what prevents many from buying a home

A new report reveals the real reason Seattleites aren't buying homes in the city. A new report reveals the real reason Seattleites aren't buying homes in the city. Photo: Photos By Sarah Vanausdoll/listing Courtesy Rachel Ablacinski, Realty Executives Brio Photo: Photos By Sarah Vanausdoll/listing Courtesy Rachel Ablacinski, Realty Executives Brio Image 1 of / 1 Caption Close What's the biggest obstacle to buying a home in Seattle? 1 / 1 Back to Gallery

Buying a home in Seattle's red-hot housing market is no doubt difficult, but a new report reveals the exact reason causing strife for many would-be buyers.

A report released earlier this week by Seattle-based real estate data company Zillow surveyed 10,000 renters and homeowners across the country about the biggest obstacles to home ownership and their feelings toward the local housing market.

When asked what prevents renters in Seattle from making a purchase, an overwhelming majority of respondents (66 percent) said coming up with a down payment is the biggest barrier. With the median home price of single-family homes in the city at an astonishing $700,000 for March, it comes as no surprise. What's more, already-high rent prices in the city prevent many from being able to sufficiently save for a down payment.

"Rising rents are also a factor -- it's extremely difficult to save when you're paying record-high rents," Zillow Chief Economist Dr. Svenja Gudell said in a release about the findings. "While it is possible to put down as little as 3 percent on a home, the trade-off is a higher interest rate and costly private mortgage insurance."

In some cases, home ownership can be more cost-effective than renting, and the report notes that making a mortgage payment is cheaper than paying monthly rent in 33 out of 35 major metro areas. But in pricier markets like Seattle, down payments can cost more than 180 percent of the average annual income. The report found one-third of respondents used gifts or loans from family members to scrape up a down payment.

Despite the dismal news, home ownership remains a dream of many, including millennials. Millennial renters are more confident than any other generation that they'll be able to afford a home someday, according to the findings, with 34 percent planning on buying in three to five years.