Housing Affordability a Major Hurdle for Active-Duty, Veterans: Survey

A new survey of more than 1,200 active-duty service members and veterans shows a dichotomy between those who describe home ownership as a career milestone, and those who can actually afford buying a house.

That’s according to findings released ahead of the spring season by NewDay USA, a national mortgage lender serving the veteran community, which found in its 2026 Military Homebuyer Readiness Survey that there is a strong demand for home ownership along with very positive results affiliated with the VA home loan benefit. However, costs associated with housing are affecting the military community just as much as all other Americans.

Thomas Lynch, a retired rear admiral in the U.S. Navy and executive chairman of NewDay USA, told Military.com that affordability issues and the contentment of the VA loan program “go hand in hand.” He was asked how he squares both aspects, that loans can be beneficial but don’t necessarily alter home prices, families’ incomes or purchasing power in what can be an erratic economy. 

“The VA loan is one of the most powerful tools in housing finance today, and the satisfaction numbers prove it,” Lynch said. “Affordability pressures are also real. The survey shows that upfront costs, such as closing and settlement costs, are among the top barriers.

“That's part of the reason why we developed the NewDay Home loan program, which provides veterans and service members a path to home ownership without these upfront costs standing in the way.”

That program has helped NewDay USA service more than 100,000 veteran families nationwide, connecting real estate agents with service members. According to their NewDay Home program, veterans don’t need to provide one dollar towards a down payment or closing costs.

Veterans and service members enrolled in NewDay Home are connected with Admiral-Certified real estate agents who are trained to advocate for military homebuyers and guide them through every step of the VA loan process.

Survey Results

More than two-thirds (68%) of respondents who don’t currently own a home said that buying one is a major milestone, or one of the most important milestones in their lives.

Of those who have used a VA home loan, 98% said they were satisfied with their experience using the VA home loan while almost half (47%) said they would not have been able to buy a home without it.

"This tells me that veterans and service members want to achieve homeownership and utilize the benefit of a VA home loan,” Lynch said. “Our opportunity now is to connect more veterans and service members with the information and tools to take that next step."

The results are based on an online survey of 1,238 current and former U.S. service members conducted by Researchscape from Feb. 18 to March 7.

Affordability a Top Issue for Home Buyers

Economics play a front-and-center role in the findings, with nearly half (49%) saying that homeownership feels out of reach while just 7% of respondents who do not currently own a home consider themselves completely ready to buy a home in 2026.

Respondents’ cited barriers for not being able to purchase a home included rising home prices (62%), lack of income (55%), and saving for upfront costs (49%).

Another 40% of respondents said they would be more likely to buy a home if down payment and closing costs were removed, with 45% saying they do not have enough savings to cover closing costs and 52% carrying more than $5,000 in high-interest debt.

That figure jumps among active-duty respondents, half of whom said they carry more than $10,000.

Another aspect is housing literacy, which has gained traction in Congress in terms of bipartisan legislation aimed to break barriers that have been routinely commonplace in military communities.

"Our survey shows that veterans and service members have a strong baseline understanding of their benefits, and that's encouraging,” Lynch said. “The opportunity is to build on that foundation so that every eligible veteran and service member understands the benefit the VA home loan provides. We welcome any bipartisan effort that supports that goal."

About 63% of respondents said they’re aware of the VA home loan and 60% identified that it typically carries a lower interest rate than conventional mortgages. Another 68% reported being unsure or incorrect about whether a down payment is required, while 77% said they didn’t know VA loans waive Private Mortgage Insurance (PMI).

Simultaneously, 55% of respondents held at least one misconception about the VA home loan, including 30% who were not yet aware that the VA home loan requires no down payment.

For active-duty respondents, 53% said they carry more than $10,000 in high-interest debt and another 78% said they were unsure whether a down payment was required.

Lynch said he used a VA loan to purchase his first home, calling it “personal” to him.

“A majority of respondents already know about the benefit, and among all service members who responded many understand the key features of a VA home loan,” he said. “However, so many are led to believe that a VA home loan is much more complex and cumbersome than an FHA or conventional loan.

“Therefore, our job is to meet with veterans and service members where they are and make sure they have the full picture so they can take advantage of the VA home loan benefit which they have earned through their service.”

VA Loans Viewed Positively, Broader US Market Still on Edge

Bernie LaPira, a U.S. Marine Corps veteran from Old Fort, North Carolina, described VA-backed loans as his “go-to” and has used them dating back to 1975—telling Military.com that the government guarantee behind the loan makes a real difference with lenders and gives service members a leg up in the home-buying process.

He and his wife retired to Old Fort in 2006, building their dream home on a mountain.

“When a lender knows the VA is backing you, the whole equation changes,” LaPira said. “And no down payment, which most people outside the military have no idea exists. I also took advantage of something NewDay USA offers called the Advantage loan, which helps cover upfront closing costs. For me it was practical.”

Americans' real estate concerns extend beyond the military community, according to numerous other polling conducted by Gallup, Harris and KeyNote—the latter of which found that roughly 1-in-4 Americans believe owning a home remains out of reach.

Gallup reported poll findings earlier this month, showing two-thirds of Americans report being priced out of the market while the smallest percentage recorded in years say they expect to buy a home within the next five or 10 years.

The Harris Poll, from its own poll this month, found that roughly 77% of Americans with homes would rather stay put than face today’s mortgage rates. Another roughly 75% cited economic uncertainty for not wanting to move, affecting buyers and sellers alike, with another 70% describing the broader market as stalled.

For those like LaPira, long-term housing viability can be achieved. His spouse died in 2023, leading to him selling the home and spending time renting in the Florida Keys. He had sold everything in his old house and was more or less starting over with new furniture, mattresses, and a generator.

But he eventually moved back to North Carolina as part of a “fresh start.”

“Once I made the decision to come back to North Carolina, things moved fast,” he said. “The whole process from application to closing with NewDay USA wrapped up in just 23 days. No complaints about the process at all.”