The housing market has been cruel to home buyers in recent years.
High interest rates, high home prices, and tight inventory have left many questioning how and when—if ever—they’ll be able to buy a home. In NerdWallet’s latest Home Buyer Report, seven in 10 Americans (69%) say the market has never been worse for buyers than it is right now, yet bold and optimistic buyers are hoping for a brighter year.
Here are 7 facts about today’s home buyer, according to the report:
- They plan to buy in the next 12 months. Pent-up demand has led to 15% of Americans planning to buy in the next 12 months. That’s the highest share since 2019 when 9% said they planned to buy.
- Over half (54%) are taking action by searching listing apps. Although a large chunk has begun searching, just 35% have started a down payment fund, but 44% are working on their credit scores.
- Last year was disheartening for would-be buyers. Only 28% of Americans who began 2024 with the intention to buy actually did by November 2024.
- Home prices were the most common reason buyers didn’t pass the finish line. Eighteen percent say they couldn’t afford the homes that were available.
- The cost of living is squeezing non-homeowners. The top factor (35%) preventing buyers from buying right now is the cost of living has gotten too high.
- Prospective buyers want to spend about $259,088 on average. The hopeful budget is well out of range for the actual median sales price of roughly $420,000, according to the U.S. Census Bureau.
- Down payments are a problem. For prospective buyers, 33% say they don’t have enough money saved for a down payment.
