The most recent Bank of America Homebuyer Insights Report, which was released in conjunction with the Bank of America Institute’s most recent On the move analysis, shows that uncertainty among current homeowners and potential buyers is at a three-year high, with 60% of respondents saying they are unsure whether this is a good time to buy a home or not, up from 48% two years ago.
Nevertheless, 52% of potential buyers are upbeat about the current status of the real estate market, stating that it is better now than it was a year ago. Compared to 62% in 2023, three out of four people (75%) are waiting to purchase a new home because they anticipate a decline in housing prices and loan rates.
“With so many factors impacting the homebuying market, prospective buyers and current homeowners are left wondering what it all means for them,” according to Matt Vernon, Head of Consumer Lending at Bank of America. “As our research shows, a majority of buyers feel the market is headed in the right direction, but many are still planning to wait for more favorable conditions before they decide to take action.”
Gen Zers On Edge of Homebuying
The new study also shows that, in spite of financial obstacles, Gen Z and Millennials are still highly motivated by the desire to become homeowners, which pushes them to prefer the long-term financial security that a home may offer over short-term sacrifices. According to three out of four existing homeowners, being a homeowner is a significant accomplishment for Gen Z and Millennials.
The data from 2025 reveals:
- 30% of Gen Z homeowners reported that they paid for their down payment by taking on an extra job, compared to 28% in 2024 and 24% in 2023.
- 22% of Gen Z homeowners reported that they purchased their home with siblings, compared to 12% in 2024 and 4% in 2023.
- 34% of Gen Z prospective homebuyers would consider living with family or friends while waiting to purchase a home.
- 21% of Gen Z prospective homebuyers say they plan to pay for their down payment with a loan from parents or family, compared to just 15% of the general population who say the same. Among all prospective homebuyers, this number is up from 12% in 2024 and 9% in 2023.
“Even with the challenges they face, younger generations still understand the long-term value owning a home offers them and many are doing what it takes to get there,” Vernon said. “They are finding creative ways to afford down payments and working hard to improve their financial futures.”
Additionally, when it comes to homeownership, 62% of both existing and potential homeowners are worried about the effects of extreme weather and natural catastrophes, and 73% believe it is crucial to purchase in places with a reduced chance of these occurrences.
The likelihood of severe weather in the neighborhood has caused many (38%) to shift their chosen home-buying location. Nearly a quarter (23%) of current homeowners have personally suffered property loss or damage as a result of extreme weather occurrences within the previous five years.
Of those who currently own a home, some 65% are taking precautions against extreme weather.
Good luck!
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