BofA Report: 60% of Homeowners and Prospective Buyers Uncertain About the Housing Market - A Three-Year High

Core Insights - 52% of prospective homebuyers are optimistic about the homebuying market, believing it is better than a year ago, with 75% expecting home prices and interest rates to decline [1][2] - The desire for homeownership remains strong among Gen Z and Millennials, with many making sacrifices to achieve this goal, as 75% of current homeowners in these demographics view owning a home as a significant milestone [2][6] - Concerns about severe weather and natural disasters are prevalent, with 62% of homeowners and prospective buyers worried about their impact on homeownership, and 73% prioritizing lower-risk areas for purchasing homes [3][7] Market Trends - The Bank of America Homebuyer Insights Report indicates that a national survey conducted from March 20 to April 22, 2025, included 2,000 respondents, with a margin of error of +/- 2.2% at a 95% confidence level [4] - The Bank of America Institute, established in 2022, utilizes extensive data from 69 million clients and $4.3 trillion in total payments to provide insights on economic trends and consumer behavior [5] Gen Z Homebuying Behavior - 30% of Gen Z homeowners financed their down payments by taking on extra jobs, an increase from 24% in 2023 [6] - 22% of Gen Z homeowners purchased homes with siblings, up from 4% in 2023, indicating a trend towards collaborative homebuying [6] - 34% of Gen Z prospective homebuyers are considering living with family or friends while saving for a home, and 21% plan to use loans from family for down payments, reflecting a shift in financial strategies [6]