HousingWireHousingWire
Current homeowners and prospective buyers are on the fence as 60% say they don’t know whether now is a good time to buy a home. That marks a three-year high and is up from 48% two years ago.
The data comes from the newest Bank of America Homebuyer Insights Report, released on Wednesday, conducted in partnership with Bank of America Institute.
The national online survey, conducted by Sparks Research between March 20 and April 22, evaluated 2,000 respondents (1,000 homeowners and 1,000 renters) who are 18 and older; who make or share in household financial decisions; and who currently own a home, previously owned a home or plan to own a home in the future.
Despite the high uncertainty, more than half (52%) of prospective homebuyers are optimistic about the state of the homebuying market, saying it’s better now than it was a year ago. Three in four (75%) expect home prices and mortgage rates to fall and are waiting until then to buy a new home — up from 62% in 2023.
“With so many factors impacting the homebuying market, prospective buyers and current homeowners are left wondering what it all means for them,” said Matt Vernon, head of consumer lending at Bank of America. “As our research shows, a majority of buyers feel the market is headed in the right direction, but many are still planning to wait for more favorable conditions before they decide to take action.”
The research also found that Generation Z is compromising in order to achieve homeownership Among Gen Z homeowner respondents, 30% reportedly saved for their down payment by taking on an extra job, compared to 28% in 2024 and 24% in 2023.
About one in five (22%) of Gen Z homeowners reported that they purchased their home with siblings, compared to 12% in 2024 and 4% in 2023. Among prospective Gen Z buyers, 34% said they would consider living with family or friends while waiting to purchase a home.
Today, 21% of Gen Zers are planning on paying for a down payment with a loan from parents or family, compared to just 15% of the general population who say the same. Among all prospective homebuyers, this number is up from 12% in 2024 and 9% in 2023.
“Even with the challenges they face, younger generations still understand the long-term value owning a home offers them and many are doing what it takes to get there,” Vernon said. “They are finding creative ways to afford down payments and working hard to improve their financial futures.”
Climate change is also top of mind for homebuyers, with 62% of all respondents expressing concerns about the impacts of severe weather and natural disasters when it comes to homeownership.
Safety is also top of mind, with 73% feeling it’s important to buy in areas where there is a lower risk of these events occurring. This led some (38%) to change their preferred location for a home purchase due to the risk of severe weather in an area.
Among current homeowners, nearly a quarter (23%) have personally experienced property damage or loss in the past five years due to severe weather events. This has led 65% of current homeowners to take measures to prepare their home for the risk of severe weather or natural disasters.
