Seventy percent of Americans believe it’s unrealistic to buy a home in 2024, according to a survey conducted by IPX 1031 of over 1,000 people nationwide.
In a challenging housing market, many Americans are reconsidering purchasing a home this year. For some Gen Zers and millennials, homeownership as a first-time buyer seems especially out of reach.
“A real estate professional can help buyers navigate this process,” said PAR’s 2024 President Preston Moore. “A Realtor® can assist a buyer in comparing different financing options and help in analyzing the loan estimates. Realtors® are trusted advisors for their clients.”
The survey found that 63% of Americans can’t afford to buy a home this year, with 87% of Gen Z unable to and 62% of millennials unable to. Given the housing market, 1 in 4 surveyed no longer believe that homeownership is a good investment in the long run, and 1 in 3 don’t believe it should still be the American dream.
IPX 1031 also surveyed participants on their housing market expectations for 2024. Thirty-five percent think homeownership will decline this year, 22% think it will improve and 45% think it will stay the same.
When it comes to selling, 23% of current homeowners want to sell but don’t want to lose their current interest rate, and 45% now consider their current home to be their forever home because of the interest rate.
On the other hand, 51% of potential buyers are waiting for interest rates to go down, and 59% are waiting for home prices to decrease.
However, despite some discouraging outlooks toward the housing market, 13% of Americans still plan to buy a new home and 46% of current homeowners plan to sell theirs in 2024. There is some concern over inventory, though, as 62% of potential buyers are worried they won’t be able to find a home due to a lack of available houses.
With a more challenging market and potentially steeper competition, 33% of buyers say they’d be willing to waive an inspection if a home they like has multiple offers. To achieve homeownership, 1 in 5 are willing to go $20,000 over asking price, and 1 in 10 are willing to go up to $60,000 over asking price.
Although many are concerned about the affordability of homeownership this year, there are still plenty of reasons why people plan on buying a home. The top reasons why people are buying a home in 2024 are relocation, upsizing and investment.