In a recent survey, Redfin sought to find the biggest concern among home buyers. The results weren't a surprise: affordability is the biggest worry among home buyers.
Just over 28% of buyers said they were most worried that “prices are rising or are too high,” the largest percentage to cite this concern in more than a year, according to Redfin. The gap between affordability and other concerns has widened, based on a Redfin survey of more than 1,800 home buyers.
The second and third most-cited top concern were issues stemming from lack of supply. Coming in second was “too much competition from other buyers,” at 13%. The third concern was a lack of homes to choose from, at 12.4%. In previous surveys the second- and third-most cited concerns made up a far higher percentage of total responses. Last year it was 31.4%, while in May it was 33.5%.
Among millennials, affordability worries were even more acute, with 32.5% citing it as their top concern and 10.3% saying they might not have enough money for a down payment.
Affordability concerns are actually the main factor pushing home buyers into the for-sale market, according to Redfin. Nearly half of all first-time home buyers, 45.4%, said they were most influenced to get into the housing market because of high rent. In comparison, a year ago 24.7% of first-time buyers said they were house hunting because of high rent.
Among all buyers surveyed, 22% said the cost of rent motivated them to get into the market, up substantially from last year’s 12.8% but down from 24.4% in May.