Vast majority of aspiring homeowners say they cannot afford the American dream

Owning a home has long been considered the main pillar of the American dream, but the vast majority of aspiring homeowners in the U.S. say they simply cannot afford it.

A new survey released by Bankrate Wednesday found 78% of would-be homebuyers cited financial factors when asked what was holding them back from making a purchase.

The most common challenges cited by respondents were insufficient income (56%), followed by home prices being too high (47%) and the inability to afford down payments and closing costs (42%).

The findings come as a housing affordability crisis in the U.S. continues to escalate with no end in sight.

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As mortgage rates topped 7% last week for the first time this year, a separate report from Redfin found that the combination of steep mortgage rates and elevated home prices has pushed the median monthly housing payment to a new record of $2,775, an 11% increase from the same time last year.

The high costs have pushed homeownership out of reach for many Americans and have left the housing market stalled for months as many would-be buyers and sellers remain on the sidelines waiting for affordability to improve.

Bankrate's latest survey found that nearly seven in 10 Americans said they were willing to take at least one step necessary to find affordable housing.

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Forty-four percent of respondents said they could downsize their living space, while 34% said they would either move out of state or buy a fixer-upper.

Another 26% said they would be willing to move farther away from loved ones, 24% said they might consider taking on roommates or living with additional family members and 20% said they could move to a less desirable area. Seventeen percent said they would be willing to move farther away from work.

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"Owning a home is still the centerpiece of the American dream, but affordability is the main obstacle to making that a reality," said Bankrate Chief Financial Analyst Greg McBride. "With the cumulative rise in home prices, rents and insurance costs, downsizing space may not yield a proportionate downsizing of costs."

FOX Business' Megan Henney contributed to this report.