Americans Are Nervous About Buying Homes, But Still Want To

Americans are nervous about buying homes in a difficult housing market but still consider it an important milestone.

That’s according to a new survey conducted by The Harris Poll on behalf of homebuilder KB Home. As National Homeownership Month begins, the company sought to understand buyers’ mindsets in the current market.

The survey revealed that 4 in 5 adults believe owning a home is an important aspect of their lives. Forty percent of respondents, especially Zoomers (62%) and Millennials (55%), said they think about buying a home at least once a week.

The benefits they cited included privacy, long-term financial benefits, and a “place to make memories.”

But many struggle to understand the process and associate the homeownership journey with stress and anxious feelings. One of their biggest fears is purchasing a “money pit” and not being able to keep up with maintenance and other costs.

Plus, more than half of Americans (56%) think that they are in a worse position to buy a home than prior generations.

At least some of their stress comes from misconceptions, however. Only half of respondents correctly identified terms such as “APR” and “PMI.”

Less than 40% knew that a 20% down payment isn’t a requirement to buy a home, and more than half believed that interest rates are currently at an all-time high. In fact, though rates are elevated, they are still well below the 1981 record high of 18.6%.

KB Home plans to combat this trend with a month of events and educational content for prospective buyers. It will host “Homebuying 101” events across the country, covering topics such as renting versus buying, new construction versus existing homes, and the particulars of the buying process.

“For nearly seven decades, KB Home has been focused on helping first-time homebuyers achieve their lifelong dream of buying a home by building affordably priced homes and partnering with buyers every step of the way,” said Rob McGibney, President and Chief Operating Officer of KB Home. “In honor of National Homeownership Month, we are building on this legacy by supporting the next generation of buyers with in-person and online resources and education.”

Get More by Signing Up for Our Newsletter!