Current Homeowners Optimistic About Buying A New Home In 2024
High rates and soaring prices are preventing many Americans from achieving the dream of homeownership, but current homeowners are optimistic about the housing market.
TD Bank surveyed nearly 2,000 homeowners across the nation and found that a majority (67%) think buying a home is still attainable, while 38% plan to buy a new house in the next year.
Millennial and Gen Z homeowners were the most optimistic about homebuying, regardless of the ongoing affordability crisis, lagging existing and new home sales, and 7% rates.
“Although many of the challenges impacting homeownership are leaving some homeowners weary about the market, it’s great to see borrowers, especially younger generations, remaining steadfast in navigating the market to find a home that works for them and their budgets,” said Steve Kaminski, Head of U.S. Residential Lending for TD Bank.
“Owning a home is still an important wealth vehicle for any generation and it’s reassuring that homeowners continue to see the value in this type of investment.”
Even current homeowners are impacted by the rising costs of homebuying, however. Among respondents who plan to stay in their current home for less than three years, almost 75% say they’ve had to increase their initial housing budgets.
Plus, the costs of owning a home have caused 70% of respondents to be unable to budget and save effectively, impacting their next home search. Saving for a downpayment is a particular concern, but the study noted that younger buyers understand a 20% downpayment isn’t always necessary.
“As younger generations grapple with historically high home values coupled with larger financial responsibilities and a higher cost of living, it’s important to make every dollar count. Speaking with a mortgage professional early on may not only help save money on a down payment but may also help buyers better prioritize and plan for other financial goals,” Kaminski commented.
A quarter of American homeowners have decided not to engage with the market again, choosing to stay in their current homes and invest in renovations to create their dream life.
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