Majority of Military Members Planning to Buy Over Next Five Years
By Kelly Leighton | Feb. 8, 2023 | 2 min. read
Seventy-one percent of current military members plan to buy a home in the next five years.
In fact, 30% of current members and 15% of veterans reported they plan to buy this year, according to a new survey from Veterans United Home Loans. Reserves and National Guard members are the most likely to plan to buy this year, at 43%, while active duty represented 20% of potential 2023 buyers.
The majority of active duty members (nearly 70%) said they live in base housing or are renting, while 29% are homeowners. Comparatively, 61% of Reserves/Guards are homeowners, as are 58% of Veterans.
What is delaying homebuying? Nearly half (49%) cited high home prices, with active members citing it as more of a concern (53%) than previously active members (39%). Higher mortgage rates were a concern to 47%, with 48% of current members reporting it an issue and 44% of previously active members. Thirty-six percent of both said they are concerned about the “uncertainty” of the housing market.
However, around 55% of Guard/Reserve members said they think the homebuying process will be easier. VA loans are one reason that members feel optimistic. For those active, 41% reported using a VA home loan benefit and 53% of Veterans are using one, with 28% using one previously.
Additionally, the lack of down payment required for a VA home loan is also beneficial to many service members. Nearly two-thirds of both service members and Veterans said that is their top reason for using a VA loan, with Veterans more likely to cite it. Also, limits on closing costs and fees with a mortgage were appealing to 36% of members. Around 90% of current service members reported being aware of the VA home loan benefit.
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