A major United States Bank recent study reveals optimism among first-time homebuyers in 2024 despite affordability worries. Key points include:

  1. Optimism and Economic Conditions: Despite concerns, 74% feel positive about the housing market, driven by potential rate decreases.
  2. Financial Readiness: 97% have initiated the buying process, with 78% perceiving stable finances.
  3. Actions Taken: Most are saving for down payments (47%) and setting budgets (38%).
  4. Spending Plans: 40% intend to spend $300,000 or more on their first homes.
  5. Financial Literacy and Assistance: Many lack awareness of down payment assistance programs, impacting low-to-moderate income (LMI) buyers.
  6. Changing Preferences: Interest shifts towards “forever homes” (48%) over fixer-uppers. Proximity to schools and workplaces is prioritized.
  7. Location Preferences: Suburban living (43%) remains popular, while urban living gains traction, especially among Gen-Z buyers.
  8. Concerns and Trends: Overpaying and lender engagement remain concerns. Interest in ARMs and down payment assistance programs is rising.

This study offers insights into first-time buyers’ sentiments and behaviors, highlighting optimism, concerns, and evolving preferences in the housing market.