Many middle-income Americans' perspective on homeownership has shifted with many now preferring to rent rather than try to buy a home, according to a new Santander survey. Santander US CEO Tim Wennes joins Wealth! to break down how Gen Z and millennials are thinking about homeownership amid elevated mortgage slips.

"The combination of high home prices and higher interest rates and impact on mortgage prices is putting home ownership out of reach for many middle-income Americans, particularly those that are Gen Z and millennials. And we're seeing them also then look at and reevaluate what is the definition of financial prosperity, and that maybe homeownership doesn't need to be part of that financial prosperity for them, and appreciating some of the flexibility and affordability that renting provides to them," Wennes tells Yahoo Finance.

He adds that half of Gen Z and millennials who have purchased a home find that they're now living paycheck to paycheck because of the costs of homeownership. Nearly half say they would consider renting because of the flexibility.

To watch more expert insights and analysis on the latest market action, check out more Wealth here.

This post was written by Melanie Riehl