Homeownership is an — if not the — American dream. And despite many current headlines and U.S. home sales hitting a nearly 20-year low in 2023, a majority of young people think this dream is still achievable, a new survey suggests.
The results, which were gathered by TD Bank, revealed 84% of existing homeowners from Gen Z, 68% of millennials, 66% of Gen Xers, and 59% of baby boomers reported homeownership remains attainable. These individuals participated in a survey this summer of about 1,800 U.S. homeowners who purchased a home in the past 10 years (using a mortgage with their most recent home).
Steve Kaminski
Head of U.S. Residential Lending, TD Bank
“Although many of the challenges impacting homeownership are leaving some homeowners weary about the market, it’s great to see borrowers, especially younger generations, remaining steadfast in navigating the market to find a home that works for them and their budgets,” said Steve Kaminski, Head of U.S. Residential Lending for TD Bank. “Owning a home is still an important wealth vehicle for any generation, and it’s reassuring that homeowners continue to see the value in this type of investment.”
Understanding current attitudes on homeownership
Homeownership has become more competitive, and buyers have adjusted their expectations and financial plans accordingly.
The TD Bank survey also found that among respondents who reported wanting to stay in their current home for less than three years, 73% increased their housing budget due to factors including climbing home prices in their region that were outside their price range as well as high interest rates.
Seventy percent of respondents reported that owning a home (and tending to related expenses like utilities, home insurance, property taxes, and repairs) hindered their financial health. Respondents said those types of home-related costs have interfered with their ability to save, invest, and budget for things like recreation and travel. One-third of respondents even reported that they’ve stopped or lowered their contributions to a retirement account to cover a home budget or save for a down payment.
Contrary to popular belief, that down payment doesn’t have to be 20%. Some buyers are aware of this: Eighty percent of Gen Z homebuyers put down less than 20%, followed by 77% of millennials, 60% of Gen X, and 44% of Baby Boomers, the survey showed.
“It’s encouraging so many homeowners understand that 20% down is not the only option, with many lenders offering low-down payment products and down payment assistance programs,” Kaminski said in the release. “As younger generations grapple with historically high home values coupled with larger financial responsibilities and a higher cost of living, it’s important to make every dollar count.
Making the homeownership dream a reality
TD Bank offers a host of resources that can help those shopping for a home or current homeowners to get on the path to homeownership.
One of its programs, TD Right Step Mortgage®, has no maximum amount of income a household must earn to qualify (no income limits) for people who buy their property in low- to moderate-income census tracts. Eligible properties include co-ops, manufactured housing, and condos. What’s more, borrowers don’t have to pay mortgage insurance.
With TD Home Access Mortgage, borrowers aren’t subject to pay mortgage insurance, either, and the aforementioned property types are eligible, too. Additionally, buyers qualify for a $10,000 lender credit for purchase transactions, making it a solid option for an affordable home loan.
“Speaking with a mortgage professional early on may not only help save money on a down payment but may also help buyers better prioritize and plan for other financial goals.”
To learn more, visit td.com/us/en/personal-banking/mortgage/low-down-payment-affordable-home-loans
For more information about the TD Bank survey or its methodology, click here.
“We hope you found this helpful. This article is based on information available in September 2024 and is subject to change. It is provided as a convenience and for general information purposes only. Our content is not intended to provide legal, tax, investment, or financial advice or to indicate that a particular TD Bank or third-party product or service is available or right for you.
For specific advice about your unique circumstances, consider talking with a qualified professional.”
