Majority of Americans Still Prioritizing Homeownership Despite Market Challenges
Despite fears of an economic recession coupled with a turbulent seller’s market, 83% of Americans are still prioritizing homeownership, according to a recent study by NerdWallet. Roughly 28 million Americans say they plan to purchase a home within the next 12 months, but not all will be successful.
Prospective buyers looking to become homeowners in the next year expect to spend an average of $269,200, well below the typical home price of $379,100 recorded in October 2022, NerdWallet reports.
Many Americans blame the economy and mortgage rates for feeling worse about 2023 homebuying prospects. About one-third (32%) of Americans feel worse about their ability to purchase a home in 2023 than in 2022, regardless of whether buying a home is in their plans. This is up from 25% when we asked last year. The top reasons for feeling worse include a worsening economy (58%) and higher mortgage rates (57%).
Most expect a housing market crash. Two-thirds (67%) of Americans say a housing market crash is imminent in the next three years.