Would-Be Homebuyers Pull Back As Job Security Concerns Loom

Concerns about job security are hanging over prospective homebuyers’ heads. According to recent survey data from real estate marketing platform Redfin, 44% of American workers are canceling plans to make major purchases—such as buying a home—due to fears of losing their job. However, 30% have either already made a major purchase sooner than expected or plan to due to job security concerns.

The number of Americans delaying major purchases increases for households that earn less. According to the report, 57% of workers from households earning less than $50,000 are either delaying or canceling major purchase plans due to worries about job security. Comparatively, 48% of workers from households earning $50,000 to $100,000, and 35% of households earning more than $100,000, are delaying or canceling major purchases.

Redfin Head of Economics Research Chen Zhao said even though unemployment came in at 4.2% in July—a relatively low level historically—workers are perceiving the labor market differently.

“Many workers are worried about job security as they watch their companies adjust to this uncertain economy and increasingly look to AI and other new technologies for efficiency gains,” she said. “From a housing perspective, that wariness is keeping some would-be homebuyers on the sidelines. On the flipside, those who feel confident in their finances are facing less competition and have more negotiating power. Sellers should recognize that buyers are cautious, so pricing a home competitively and offering flexibility will be critical to closing a deal.”