First-time buyers remain strongly motivated to face the housing market despite the impact of the COVID-19 pandemic, according to the results of Chase Home Lending’s new First-Time Homebuyer Study. Out of 1,100 respondents surveyed between March 10 and 24, who had all indicated that they were actively preparing to buy their first home, 60% said they are likely to purchase a home in the next 12 months.
The top three reasons respondents cited for purchasing a home are larger living spaces, space for family, and financial independence. About half of respondents said COVID-19 had some kind of influence on their home buying location.
The majority of buyers indicated that COVID-19 changed their plans for 2020, with 70% stating they had waited to see how the market would play out last year before they bought a home. Many indicated that their decision to buy was affected by a change in income (61%) or reconsideration of home purchase financing (58%).
Only one in four buyers surveyed said that they had “strong” confidence in their financial ability to purchase a home in the first half of 2021. A much larger share are preparing their savings for homeownership: 70% have made lifestyle changes geared toward saving for a home, 66% have created monthly budgets and worked to improve their credit score, 33% have conducted research on down payment assistance programs, and 77% are actively saving for a down payment.
Among Black and Latinx respondents, nearly 75% agreed that homeownership is a crucial step toward building wealth—slightly higher than the 69% average across all groups. Almost half of Black and Latinx respondents felt knowledgeable and comfortable with the home buying process, above the 40% overall average, and 65% expected the process to be enjoyable, above the 51% overall average. Black and Latinx respondents are more likely than other respondents to purchase homes in urban locations (30%) and to prioritize the safety of the neighborhood (67%).
“The events of the last year upended various aspects of our lives, including prospective home buyers and their plans to purchase,” says Sean Grzebin, head of consumer origins for Chase Home Lending. “Despite possible income changes and prolonged timelines, buying a home as a means to build wealth and stability still resonates with first-time home buyers. The research shows that they are also open to making lifestyle changes in order to reach their homeownership goals.”
