The number of Americans planning to buy their first home has dropped sharply since 2022 and—among those in the market—the majority have not saved for a down payment, a new report from international market research firm YouGov finds.
In fact, 61% of prospective US first-time home buyers report having less than $5,000 in savings, and 28% have less than $100 in a savings account.
YouGov America’s First-Time Home Buyers Report 2023 provides an overview of who in the US is buying their first home in 2023, where they are currently living, their financial situation, and the mortgage lenders in their consideration set.
Drawing on consumer survey data from YouGov Profiles, the report finds that:
- 52% of first-time home buyers have never been married (vs 37% of the nation).
- Residents of Los Angeles, New York, Houston, and Miami are more likely to be interested in buying their first home than those in other US metros.
- 17% of first-time home buyers have lived in the US for less than 10 years (vs 13% of the nation).
- 30% of first-time home buyers have a household monthly disposable income exceeding $2,500 (vs 18% of the nation).
- 87% plan to save more money next year (vs 70% of the nation).
“While many Americans planning to buy their first home have very little saved for a down payment, our data suggests they have been working full-time and generating sufficient income,” said Ryan Gmerek, VP at YouGov America. “Mortgage lenders will want to reach these prospective buyers with longer-tail marketing and regularly monitor consumer sentiment data to understand how plans to grow savings accounts manifest to a turning point in the market.”
The report also provides a ranking of the most considered mortgage lenders among prospective first-home buyers, led by Bank of America, Chase, Rocket Mortgage and Wells Fargo.
YouGov’s full report is available for download here.
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