There's still a strong will among Americans to become homeowners but a new report shows some key challenges for first-time buyers
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There’s still a strong will among Americans to become homeowners but a new report shows some key challenges for first-time buyers.
Three-quarters of respondents to a survey for Nerdwallet.com said that buying a home is a priority. A third plan to do so within the next five years, more than double the share of those who said they have become homeowners in the past five years.
But the results show that some would-be buyers are not fully informed about the costs of buying and owning a home – making it essential that they are helped to correctly identify their budget.
“The entry costs to homeownership, such as the down payment and closing costs, can be substantial, but it doesn’t end there,” says NerdWallet mortgage expert Tim Manni. “Prospective home buyers cannot neglect the ongoing costs of ownership when determining how much home they can afford.”
Who wants to buy and why?
The poll, conducted by Harris Poll, reveals that the thirst to buy a home is strongest (not surprisingly) among millennials with 82% saying it’s a priority – compared to 75% of Gen Xers and 69% of Boomers.
For 17% of respondents across all ages renting is preferred. But this is mainly because they don’t have the money to buy (56%), don’t want the financial commitment (24%) or have bad credit (22%).
Potential buyers are evenly split on whether now is a good time to buy given the political and economic landscape. 35% third said they are more likely to buy, 35% are less likely, and the other 30% said they were unsure.
Consumers are also split on which is more affordable, with a third saying renting and 30% saying buying.
The study found that 28% of respondents are concerned about the mortgage application process. They fear that it will be stressful, time consuming and an effort.
There is also concern that they may not be approved for a home loan (38%).
Overall though, around three quarters of all income groups polled said that they consider homeownership as a good way to grow their money.
Three-quarters of respondents to a survey for Nerdwallet.com said that buying a home is a priority. A third plan to do so within the next five years, more than double the share of those who said they have become homeowners in the past five years.
But the results show that some would-be buyers are not fully informed about the costs of buying and owning a home – making it essential that they are helped to correctly identify their budget.
“The entry costs to homeownership, such as the down payment and closing costs, can be substantial, but it doesn’t end there,” says NerdWallet mortgage expert Tim Manni. “Prospective home buyers cannot neglect the ongoing costs of ownership when determining how much home they can afford.”
Who wants to buy and why?
The poll, conducted by Harris Poll, reveals that the thirst to buy a home is strongest (not surprisingly) among millennials with 82% saying it’s a priority – compared to 75% of Gen Xers and 69% of Boomers.
For 17% of respondents across all ages renting is preferred. But this is mainly because they don’t have the money to buy (56%), don’t want the financial commitment (24%) or have bad credit (22%).
Potential buyers are evenly split on whether now is a good time to buy given the political and economic landscape. 35% third said they are more likely to buy, 35% are less likely, and the other 30% said they were unsure.
Consumers are also split on which is more affordable, with a third saying renting and 30% saying buying.
The study found that 28% of respondents are concerned about the mortgage application process. They fear that it will be stressful, time consuming and an effort.
There is also concern that they may not be approved for a home loan (38%).
Overall though, around three quarters of all income groups polled said that they consider homeownership as a good way to grow their money.
