Key Details:
- Bank of America’s latest Homebuyer Insights Report shows 60% of homeowners and prospective buyers are unsure whether now is a good time to buy—the highest level of uncertainty in three years.
- Despite this, 52% of buyers believe the market has improved since last year, while 75% are holding off on purchases, expecting prices and rates to fall.
- Gen Z buyers are adapting by taking extra jobs, co-buying with siblings, and leaning on family loans for down payments.
Uncertainty is back in a big way, and it’s hitting both current homeowners and would-be buyers.
According to the latest Bank of America Homebuyer Insights Report, 60% of homeowners and prospective buyers say they’re unsure whether now is a good time to buy a home. That’s the highest share in three years and a significant jump from 48% two years ago.
But that doesn’t mean the outlook is all doom and gloom. In fact, the same report shows a more nuanced story of cautious optimism, especially among younger buyers.
Buyers Are Hesitant, but Hopeful
Even with market uncertainty at a high, 52% of prospective buyers say today’s housing market is better than it was a year ago.
Still, the majority are holding off for now. According to the report, 75% of prospective homebuyers expect both prices and interest rates to fall, and they’re waiting for those conditions to improve before making a move.
That number is up from 62% in 2023.
Matt Vernon, Head of Consumer Lending at Bank of America, emphasized the confusion many consumers are experiencing:
“With so many factors impacting the homebuying market, prospective buyers and current homeowners are left wondering what it all means for them.”
He adds that while sentiment may be improving, most buyers are still in a holding pattern:
“As our research shows, a majority of buyers feel the market is headed in the right direction, but many are still planning to wait for more favorable conditions before they decide to take action.”
Younger Buyers Are Making Sacrifices
For Gen Z and Millennials, the desire to buy is strong, but it’s also coming with big compromises. The report highlights the growing financial strain and creativity among younger buyers as they navigate today’s market realities.
How Gen Z buyers are adapting:
- 30% of Gen Z homeowners took on an extra job to pay for their down payment—up from 28% in 2024 and 24% in 2023.
- 22% of Gen Z homeowners purchased their home with siblings, compared to just 12% in 2024 and 4% in 2023.
- 34% of Gen Z prospective buyers would consider living with family or friends while waiting to buy.
- 21% of Gen Z prospective buyers say they plan to use a loan from family for their down payment—higher than the general population (15% in 2025, up from 12% in 2024 and 9% in 2023).
Vernon points out that while the path to homeownership has changed, the value placed on it hasn’t:
“Even with the challenges they face, younger generations still understand the long-term value owning a home offers them and many are doing what it takes to get there.
“They are finding creative ways to afford down payments and working hard to improve their financial futures.”
Weather Is Shaping Buying Decisions, Too
Beyond affordability, a growing number of buyers are factoring in climate risk.
- 62% of current homeowners and prospective buyers are concerned about the impact of severe weather and natural disasters.
- 73% say it’s important to buy in an area with lower risk of weather-related events.
- 38% have changed their preferred buying location due to concerns about severe weather.
Among current homeowners, 23% have experienced property damage or loss in the last five years from a weather event. And 65% of homeowners are actively taking steps to protect their homes from future damage.
Survey Snapshot
The Homebuyer Insights Report is based on a national survey conducted by Sparks Research between March 20 and April 22, 2025.
The survey included 2,000 adults (1,000 homeowners and 1,000 renters) who either currently own, previously owned, or plan to own a home. The margin of error is ±2.2%.
Key Takeaways for Agents
As buyer sentiment continues to shift, agents who stay ahead of the data and understand what’s driving consumer behavior will be best positioned to serve their clients and grow their business.
Here’s what to keep in mind:
- Don’t assume buyers understand the market. Many don’t. The 60% uncertainty stat is a strong signal that clear, confident guidance is more valuable than ever.
- Younger buyers are willing to sacrifice, but they still need solutions. Help them explore creative paths to homeownership without compromising long-term stability.
- Weather concerns are influencing location choices. Agents who understand local climate risks (and insurance implications) can better serve this growing concern.
- Stay grounded in consumer sentiment. Buyer behavior isn’t always driven by data alone; it’s also shaped by perception, fears, and financial reality.
Market data tells you what’s happening. Buyer sentiment tells you why it matters. Every buyer moves at a different pace for a different reason. Agents who recognize those signals and know how to act on them are the ones turning conversations into closings.
