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new Bank of America report reveals a surge in uncertainty among U.S. homeowners and prospective buyers, with 60% unsure if it's a good time to buy a home - the highest level in three years. This figure has risen steadily from 48% in 2023 to 57% in 2024.
Despite the uncertainty, many are cautiously optimistic. Over half (52%) believe the market has improved compared to last year, while 75% are waiting for a decline in home prices and interest rates before making a purchase - an increase from 62% in 2023.
Younger generations, particularly Gen Z, are taking creative steps to achieve homeownership. According to the report:
* 30% of Gen Z homeowners took on an extra job to fund their down payment.
* 22% bought homes with siblings, up significantly from 4% two years ago.
* 34% would consider living with family or friends while saving for a down payment.
Gen Z buyers are willing to make sacrifices to own a home, understanding its long-term value. "Even with the challenges they face, younger generations still see owning a home as a key part of their financial futures," said Matt Vernon, Head of Consumer Lending at Bank of America.
Severe weather and natural disasters are also influencing buying decisions, with 62% citing these concerns in their housing choices. Nearly three-quarters (73%) say it's essential to purchase a home in an area with lower weather-related risks.
The report highlights the importance of climate considerations in homebuying behavior:
* 38% of buyers have changed their preferred location due to weather risk.
* 23% of current homeowners have experienced property damage or loss from severe weather in the past five years.
* 65% are now actively preparing their homes for potential climate impacts.
The report is based on a national survey conducted by Sparks Research, with responses from 2,000 U.S. adults involved in household financial decisions and either owning or planning to own a home.
