As the housing boom continues, with home prices setting records and rising rents further stretching Americans’ budgets, new data from Bankrate shows that 58% of U.S. adults would be willing to take action to find more affordable housing.
This includes moving out of state, moving farther from family and friends, buying a fixer-upper, moving farther from work, moving to a less desirable area, and/or something else. The study findings show 75% of Gen Z and 69% of millennials would consider at least one of these actions, compared to 59% of Gen X and 41% of baby boomers. Here are some additional findings in the report:
- Moving to a cheaper area: 27% of U.S. adults said they would be willing to move out of state to find more affordable housing.
- Additionally, 20% would move farther from family and friends
- 13% would move farther from work
- 11% would be open to moving to a less desirable area.
“The rise of remote work makes affordability-driven migration more attractive,” writes Jeff Ostrowski, Bankrate.com analyst and author of the report. “However, most expensive markets have rewarded homeowners through robust appreciation. Cheaper markets, while enticingly affordable, create less housing wealth. You’ll also potentially have to leave behind family and friends and the support they offer for things like childcare.
- Buying a fixer-upper: 21% would be open to a fixer-upper as a way to find more affordable housing. For buyers frustrated by the lack of inventory and rocketing prices, older homes can be a good compromise. However, no matter how careful you are about estimating your renovation budget, you can count on surprises—especially in a time when materials costs are volatile and construction labor is in short supply, the report states.
Potential homebuying pitfalls:
- Waiving inspection: To waive the typical inspection contingency without getting burned, be sure to reserve the right to conduct an inspection for the purposes of gathering information. This means, in a competitive market, waiving the home inspection contingency without waiving the inspection itself. The idea is that you don’t want to ask the seller to pay for minor touch-ups, but you also don’t want to unwittingly buy a house that needs tens of thousands of dollars in repairs, the report states.
“In today’s housing market, desperate buyers are willing to make concessions that may not be the best decisions in the long run,” Ostrowski says. “This can include buying in a cheaper area that can create fewer wealth-building opportunities in the future, waiving home inspections, and stretching budgets beyond what is reasonable. It is important to weigh the pros and cons, go in with a plan, and be as patient as possible.”
To read the full report, click here.