SYRACUSE, N.Y. (WSYR-TV) — If homebuyers thought the housing market was already competitive and challenging in 2023, a new report has found that Americans don’t think it’ll get any easier in 2024.
According to a new study from IPX 1031 — a Fidelity national financial company — 62% of Americans admitted they were worried they wouldn’t be able to find a home due to a lack of inventory, and 70% think it’s unrealistic because of affordability.
Out of all the generations, more than half of Gen Zers and Millennials don’t think home ownership is attainable because 87% of Gen Zers and 62% of Millennials are unable to afford to buy a home at this time.
That’s why more than half of Americans admitted they’re waiting for interest rates to drop before buying a home, as average mortgage rates dropped below 7% for the first time in months in the third week of January.
“Our data discovered owning a home is a symbol of success and stability for some Americans and a way to build wealth and equity over time. However, the path to homeownership is not always easy,” the study stated.
Although one in four Americans don’t believe owning a house is a good investment in the long run, some are still hopeful.
In 2024, one in 10 Americans say they plan to buy a new home next year, while one in four think the housing market will improve. Among current homeowners, 46% plan to sell their current home, while 54% intend to keep their current home as an investment.
“A concern among potential buyers in 2024 is the lack of available inventory, with 62% expressing apprehension about finding a suitable home. This scarcity of properties is pushing buyers to adopt more competitive strategies, including waiving home inspections in cases of multiple offers, which one in three Americans would be willing to do. Additionally, one in five buyers are willing to go over the asking price by $20,000 and 10% are willing to stretch up to $60,000 beyond the asking price,” stated the study.
According to the study, the primary motivations driving Americans to purchase a home in 2024 are relocation, upsizing and investment.
If potential buyers plan carefully with strategic maneuvering and use the guidance of experienced professionals, they could increase their chances of successfully navigating this complex market and achieving their dream of homeownership.
Methodology
IPX 1031 surveyed 1,008 people from across the U.S. in November 2023, and respondents were asked about their home-buying plans in 2024. Among respondents, 50% identified as male and 48% as female, with an average age of 41 years old.