Millennials and Gen Z Hopeful to Become Homeowners in 2023

More than half of potential homebuyers said they plan to speed up their homebuying plans or continue according to their original plans, despite the challenging market.

According to a Bank of America report, both millennials and Gen Z are eager to become homebuyers this year. Sixty-two percent of Gen Z and 55% of millennials said they are hopeful to buy a home by the end of the year. However, the majority of would-be buyers are aware there are obstacles in their journey. More than half (55%) of potential homebuyers said the market is more competitive today compared to last year, while 27% consider it just as competitive as 2022. Nearly one-third of respondents don’t think it’s a seller’s or a buyer’s market, while 39% think it’s a seller’s market, making it a more challenging time for them to buy. However, most remain hopeful they will be able to purchase a property this year.

Close to 70% of would-be buyers said interest rates and home prices will not impact when they buy their home, they will buy when the time is right for them. And homebuyers are remaining engaged. Regardless of when they plan to buy, 57% are checking home prices regularly, 52% use real estate apps to see what they can afford with their budget, 50% check out homes for sale in their community and 44% said they are learning about the homebuying process.

For those with a budget in mind, 65% said they check for-sale properties to see what they can realistically buy, 41% said they enjoy checking out homes listed for sale online and 37% scroll for-sale home sites to think about what they want in their future home. Despite some taboos surrounding money, the majority of soon-to-be homebuyers said they were comfortable discussing some financial topics. More than 80% said they would discuss how they came up with their down payment, 79% said they would disclose how much they put down, 76% would discuss their credit score and 70% would talk about their income.