Desire for homeownership growing among Americans

Desire for homeownership growing among Americans

Desire for homeownership growing among Americans
The COVID-19 pandemic has driven Americans’ desire to transition from renter to homeowner. According to a new report from the National Association of Home Builders, the share of Americans who are considering purchasing a new home in the next 12 months was 13 percent as of Q3 2020. This is an increase of one percentage point from 2019 and the first year-over-year gain in the 3-year history of the report.

Between 2019 and 2020, the share of Generation Z adults planning a home purchase climbed to 14 percent, up from 11 percent. By far, the largest block of prospective homebuyers were first-timers. 55 percent of those considering a home purchase in the coming year are those seeking their first purchase.

A significant 81 percent of Gen Z’s planning to buy a home are first-timers, compared to 64 percent of Millennials and 45 percent of Gen X’ers. Just 24 percent of Baby Boomers looking to buy a home in the next twelve months would be first-time buyers.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.5 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.