Despite the fluctuating housing market this past year, confidence levels remain high with 44% of potential homebuyers, up 12% from the previous year, indicating they are confident they’ll be financially ready to purchase in the coming year, according to a new report from Chase.
Chase’s First-Time Homebuyer Study is based on the responses of 1,900 U.S.-based consumers fielded in Q4 2022 amongst those who have never owned a home. The report found that, though the current state of the economy has a considerable impact, 58% of respondents said that they were likely to purchase in the next 12 months, and 70% still see homeownership as an important step to building wealth.
Key highlights:
- Two-in-three respondents have improved their credit score and implemented budgeting techniques to save more for a home. 64% are working to improve their credit score, 63% are creating and sticking to monthly budgets, and 67% are making lifestyle adjustments.
- Black Americans represent 21% of first-time homebuyers in 2022, Hispanic Americans represent 13%, and single women represent 22%.
- First-time homebuyers are more likely to be married or partnered Millennials (56%), but nearly 40% are single. Twenty-five percent are Gen X, and even some (7%) Boomers are entering the homebuying process for the first time.
- One-in-four first-time homebuyers moved in with their parents/family as a money-saving strategy, up 12% YoY. Two-in-five future homeowners plan to move in with family, up from one-in-five last year. Even Gen X is more likely to resort to live with family than a year ago, with 19% having already moved in (up from 10% in 2021), and an additional 14% (up from 7% in 2021) expecting to do so.
- 63% know the financial-related changes and activities they need to do to qualify for a loan.
- 59% know how much money they need to have to purchase a home, yet 46% are not sure they will ever be able to save enough.
Major takeaway:
“The homebuying process can be complex, so it’s critical that homebuyers have the right knowledge, tools and experts to help them,” said Sean Grzebin, Head of Consumer Originations for Chase Home Lending. “The latest set of resources from Chase, coupled with our network of home lending advisors, were designed with the current needs of homebuyers in mind, like locking in a rate and finding opportunities for savings. We’re excited for consumers to explore our updated offerings and engage with tools that can help them achieve homeownership.”
Grzebin continued, “Prospective homebuyers are eager to tap into the wealth-building capabilities that homeownership brings. Despite market uncertainty and lengthened timelines, first-time buyers are making the necessary lifestyle adjustments to reach their homeownership goals.”
For the full report, click here.
