Survey: Nearly 1 in 5 Americans Plan to Buy a Home in 2023
Buying a home: a crucial play in the Game of Life, both metaphorical and real, and it’s a huge milestone for many Americans. Who is looking for a dream home, and who is looking for a simple roof over their head? No one wants to invest unwisely.
We surveyed over 1,000 Americans on their attitudes and goals around buying a home in 2023. While many might need a contractor or two before the house they buy is a dream home, or some might even look for a home built to their dreams, it turns out that most Americans - 61%, in fact - cannot currently afford to buy a home.
Home Buying in 2023
Part and parcel of home buying is, of course, the move. An exciting and excruciating experience, moving is a nearly universal part of the American experience. Nearly 1 in 3 Americans plan on moving in 2023, with 48% staying close to where they are, and 28% moving out of state or internationally.
Almost 1 in 5 are planning on buying a home in 2023; 30% of those are first-time home buyers, while others are upgrading (22%), buying property as an investment opportunity (20%), or downsizing (13%). For those searching, the top tools for finding a home include Zillow (who hasn’t browsed there!), a real estate agent, and Google. 1 in 3 is looking for homes in the suburbs and 56% are looking for a single-family home.
What Matters in Home Buying
Who hasn’t fantasized about their dream home? More than 1 in 6 Americans expect their first home to be their dream home, and 46% of Americans are willing to go over budget to buy their dream home - by a whopping $84,500!
What constitutes a dream home? Important factors include location, price, size, bedrooms, and mortgage rates. For many, it’s hard to find the right price or the right place, 1 in 10 say they’re having trouble finding a home due to low inventory. Perhaps dreamers might be better off fixing up a home that, with a little work, could become the stuff of dreams.
Why Americans Might Not Buy a Home
While many Americans anxiously look forward to buying a home in 2023, others simply can’t or don’t want to. Top deterrents include sky-high mortgage rates, followed by location, property taxes, crime rate, and the overall uncertainty of the housing market. Of those looking to sell, more than 1 in 10 are worried they won’t even be able to SELL their homes!
Finances Behind Buying a Home
Homes are expensive, and for 61% of Americans, they are too expensive. Will that change in 2023? No one knows! 68% are concerned about the current housing market, and 52% believe the market will only become less affordable in 2023. This volatility has inspired over 1 in 10 to prefer renting even if money weren’t an object.
Other key factors in moving motivation include lower property taxes; 38% say they would move states in search of lower taxes. 40% say rising interest rates impact the commitment to buying a home at all in 2023, and nearly 1 in 5 Americans have abandoned the dream of homeownership altogether.
2023 Housing Market
The housing market continues to be a huge variable in homeownership for many Americans. Nearly 1 in 2 (48%) are worried about a housing market crash and over 2 in 5 fully believe that a crash will happen in 2023. Top contributing factors to this potential crash include inflation (45%), the looming recession (34%), and a housing bubble bursting (31%). Happily, 41% believe this crash won’t be as brutal as 2008, though 30% believe it will be the same and 29% think it will be worse.
Renters are suffering too; 58% say their rent increased in 2022, and 64% believe their rent is more expensive than it should be. Nearly 3 in 4 renters expect their rent to increase again due to inflation, and 60% are already having more difficulty paying for rent because of inflation. For homeowners, an optimistic 32% believe mortgage rates will decrease, with 38% believing it will happen in the next 7-12 months.
Homeownership remains a lofty goal for many, and many more are hoping that 2023 will be their year to find their first home, their dream home, or simply a home with low taxes. Here’s hoping it’s a lucky year for everyone and that they can make their home dreams come true.
Methodology
In December 2022, we surveyed 1,005 Americans to get their feedback on homeownership and what this year will bring in terms of a homeowner's outlook. Respondents were 48% female, 50% male, and 2% non-binary/non-conforming with an age range of 18 to 84 and an average age of 40 years old.
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