By Leah Draffen | Builder
Home buyers are feeling the effects of a tough year filled with high mortgage rates, high prices, and limited resale inventory. The tight conditions have left 67% of Americans saying the housing market has never been worse for buyers than it is right now, according to NerdWallet’s 2024 Home Buyer Report.
The negative sentiment is felt strongest among the youngest generations, with 74% of Generation Z saying the housing market has never been worse for buyers than it is right now, compared with 71% of millennials, 66% of Gen X, and 60% of baby boomers.
“2023 was terrible to home buyers, but 2024 will be better as mortgage rates fall and homes become more affordable,” says Holden Lewis, NerdWallet home and mortgages expert. “Actually, ‘less unaffordable’ might be a better way to say it. Buyers will likely struggle to find affordable homes in 2024, but the home buying experience might not be as miserable as in 2023.”
While 12% of Americans say they plan to purchase a home in the next 12 months, the average price they hope to spend is $274,800, which is well below the national median sales price. Of those who plan to buy, Gen Z and millennials represent 21% each compared with 9% of Gen X and 4% of baby boomers. More urban Americans plan to buy in the next 12 months (19%) compared with 10% of suburban and 8% of rural respondents.
