BofA Report: 60% of Homeowners and Prospective Buyers Uncertain About the Housing Market - A Three-Year High

Rhea-AI Summary

Bank of America's latest Homebuyer Insights Report reveals that 60% of homeowners and prospective buyers are uncertain about the housing market, marking a three-year high (up from 48% two years ago). Despite this uncertainty, 52% of prospective buyers believe the market is better than last year, with 75% waiting for lower prices and interest rates before purchasing. The report highlights that Gen Z buyers are taking creative approaches to homeownership, with 30% taking extra jobs for down payments and 22% buying with siblings. Weather concerns are significantly impacting housing decisions, with 62% worried about severe weather impacts and 38% changing preferred locations due to weather risks. The survey, conducted between March-April 2025, included 2,000 respondents and has a margin of error of ±2.2%.

Positive

• 52% of prospective buyers believe the market is improving compared to last year
• Gen Z showing strong commitment to homeownership through creative solutions like taking extra jobs (30%) and co-buying with siblings (22%)
• 75% of buyers are strategically waiting for better market conditions with lower prices and rates

Negative

• Uncertainty about housing market timing reaches three-year high at 60%
• 62% express concerns about severe weather impacts on homeownership
• 23% of current homeowners experienced weather-related property damage in past 5 years
• Rising trend in family loans for down payments indicates affordability challenges

Insights

Banking Industry Analyst

BofA's latest housing report reveals record uncertainty but opportunities in targeted lending to Gen Z buyers despite challenging market conditions.

Bank of America's latest Homebuyer Insights Report offers a fascinating look at current consumer sentiment in the housing market, with record-high uncertainty creating both challenges and opportunities for the bank's mortgage business. The 60% uncertainty rate among potential buyers represents a significant 12 percentage point increase from two years ago, suggesting continued hesitancy in BAC's consumer lending pipeline.

Despite this uncertainty, there are several encouraging signals for BAC's mortgage division. The 52% of prospective buyers who believe market conditions have improved year-over-year indicates a potential uptick in mortgage demand should interest rates decline. More importantly, the report reveals specific behavioral trends that BAC can leverage for targeted product development.

The data on Gen Z homebuyers is particularly valuable from a banking perspective. The rising trend of young buyers taking on extra jobs (30%, up from 24% in 2023), purchasing with siblings (22%, up from just 4% in 2023), and seeking family loans (21% vs. 15% general population) signals opportunities for BAC to develop specialized lending products. These could include co-borrower programs, family guarantee options, and flexible income verification methods specifically tailored to younger buyers with non-traditional financial profiles.

The 62% concerned about severe weather also presents an opportunity for BAC to expand its insurance partnerships and climate-resilient property financing options. With 38% changing preferred locations due to weather concerns, BAC could differentiate itself by incorporating climate risk analytics into its mortgage pre-approval processes, potentially reducing long-term portfolio risk while addressing a significant consumer concern.

Despite Uncertainty, Prospective Buyers Are Cautiously Optimistic About Market Improvements

CHARLOTTE, N.C., May 28, 2025 /PRNewswire/ -- Uncertainty among current homeowners and prospective buyers is at a three-year high, with 60% saying they can't tell whether now is a good time to buy a home or not, compared to 48% two years ago, according to the latest Bank of America Homebuyer Insights Report (PDF), released in coordination with Bank of America Institute's latest On the move analysis.

Despite this, 52% of prospective homebuyers are optimistic about the state of the homebuying market, saying it's better now than it was a year ago. Three out of four (75%) expect home prices and interest rates to fall and are waiting until then to buy a new home, up from 62% in 2023.

"With so many factors impacting the homebuying market, prospective buyers and current homeowners are left wondering what it all means for them," says Matt Vernon, Head of Consumer Lending at Bank of America. "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."

Gen Z compromising in order to buy

The new research also reveals that despite financial hurdles, the dream of homeownership remains a powerful motivator for both Gen Z and Millennials, driving them to make sacrifices in the present and prioritize the long-term financial security a home can provide. For Gen Z and Millennials, three out of every four current homeowners say owning a home is a milestone achievement. The 2025 data shows:

• 30% of Gen Z homeowners reported that they paid for their down payment by taking on an extra job, compared to 28% in 2024 and 24% in 2023.
• 22% of Gen Z homeowners reported that they purchased their home with siblings, compared to 12% in 2024 and 4% in 2023.
• 34% of Gen Z prospective homebuyers would consider living with family or friends while waiting to purchase a home.
• 21% of Gen Z prospective homebuyers say they plan to pay for their down payment with a loan from parents or family, compared to just 15% of the general population who say the same. Among all prospective homebuyers, this number is up from 12% in 2024 and 9% in 2023.

"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," says Vernon. "They are finding creative ways to afford down payments and working hard to improve their financial futures."

Severe weather is top of mind for homebuyers

62% of current homeowners and prospective buyers are concerned about the impact of severe weather and natural disasters when it comes to homeownership, and 73% feel it is important to buy in areas where there is lower risk of these events occurring.

• Many (38%) have changed their preferred home purchasing location due to the risk of severe weather in the area.
• Among current homeowners, nearly a quarter (23%) have personally experienced property damage or loss in the last 5 years due to severe weather events.
• 65% of current homeowners are taking measures to prepare their home for the risk of severe weather.

Bank of America Homebuyer Insights Report

Sparks Research conducted a national online survey on behalf of Bank of America between March 20 and April 22, 2025. A total of 2,000 surveys (1000 homeowners / 1000 renters) were completed with adults 18 years old or older, who make or share in household financial decisions, and who currently own a home/previously owned a home or plan to own a home in the future. The margin of error is +/- 2.2 percent at the 95 percent confidence level. Select questions allowed respondents to choose more than one answer, resulting in responses that may equate to more than 100 percent.

Bank of America Institute

Bank of America Institute is dedicated to uncovering powerful insights that move business and society forward. Established in 2022, the Institute is a think tank that draws on data and analyses from across the bank and the world to provide timely and original perspectives on the economy, sustainability, and global transformation. The Institute leverages the depth and breadth of the bank's proprietary data, from 69 million consumer and small business clients, 58 million verified digital users, $4.3T in total payments in 2024 and $1.2T in consumer and wealth management deposits. From this robust data set, the Institute provides a unique perspective on the health of the economy. It also elevates thought leadership from throughout the bank that addresses long-term trends and shares these findings with the general public.

Bank of America

Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with approximately 3,700 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 59 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (NYSE: BAC).

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.

Reporters may contact:

Susan Atran, Bank of America  
Phone: 1.646.599.3300
susan.atran@bofa.com 

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SOURCE Bank of America Corporation

FAQ

What percentage of homeowners are uncertain about the BAC housing market report in 2025?

According to Bank of America's report, 60% of homeowners and prospective buyers are uncertain about whether it's a good time to buy a home, representing a three-year high compared to 48% two years ago.

How are Gen Z buyers managing down payments according to Bank of America's 2025 report?

30% of Gen Z homeowners took on extra jobs to pay for down payments, while 22% purchased homes with siblings, and 21% plan to use loans from parents or family members.

What percentage of buyers are waiting for lower prices according to BAC's 2025 housing report?

75% of prospective homebuyers are waiting for home prices and interest rates to fall before making a purchase, up from 62% in 2023.

How is severe weather affecting homebuying decisions in Bank of America's 2025 report?

62% of homeowners and buyers are concerned about severe weather impacts, 38% have changed their preferred location due to weather risks, and 73% prioritize buying in areas with lower risk of natural disasters.

What percentage of current homeowners faced weather-related property damage according to BAC's report?

23% of current homeowners have personally experienced property damage or loss due to severe weather events in the last 5 years.