Despite Recession Fears, Nearly 30% of Home Shoppers Say a Downturn Could Make Them More Likely to Buy a Home

Rhea-AI Summary

A new Realtor.com survey reveals that while 63.4% of home shoppers expect a recession within 12 months, 29.8% view it as an opportunity to buy, nearly double those who'd be less likely to purchase (15.8%). 54.4% say a recession wouldn't impact their buying decision. The survey identifies key market challenges: 44.3% cite limited inventory as the main obstacle, while 36% face budget constraints. The market shows signs of cooling, with overbidding concerns dropping to 7.7% from 10.4% last year. Housing inventory remains 16.3% below historical norms, while credit-related challenges affect 13.5% of buyers. The findings suggest a shifting market dynamic where economic uncertainty meets potential opportunity for well-prepared buyers.

Positive

• 29.8% of buyers see recession as an opportunity to buy, indicating market resilience
• 54.4% of buyers say recession won't impact their purchase decision
• Decreased overbidding concerns (7.7% vs 10.4% last year) suggest better buyer negotiating power
• Market showing signs of stabilization with increased time on market and more stable pricing

Negative

• Housing inventory remains 16.3% below historical norms
• 44.3% of buyers cite lack of suitable homes as major concern
• 36% of buyers face budget constraints
• Rising credit-related challenges with 13.5% citing poor credit scores

Insights

Real Estate Market Analyst

Realtor.com's survey reveals mixed consumer sentiment - recession fears aren't deterring most buyers, suggesting resilience in NWSA's real estate platform business.

This survey from News Corp's Realtor.com unveils a fascinating dichotomy in the housing market. Despite 63.4% of shoppers expecting a recession within 12 months, the data shows remarkable resilience in buyer intent. The fact that 54.4% of respondents indicated a recession would have no impact on their purchase decisions, while nearly 30% said it might actually make them more likely to buy, represents a significant opportunity for Realtor.com's platform engagement even during economic uncertainty.

The persistent inventory shortage (cited by 44.3% of respondents as their primary barrier) continues to shape market dynamics fundamentally. With active inventory still 16.3% below historical norms, this supply-demand imbalance will likely continue supporting price stability even if economic conditions deteriorate. For Realtor.com, this translates to sustained demand for their platform services as buyers need more tools and time to locate suitable properties.

Particularly noteworthy is the declining concern about overbidding (down to 7.7% from 10.4% a year ago), signaling a market transitioning toward more normal conditions. This shift suggests longer dwelling times on listings platforms as buyers can afford to be more deliberate in their searches. For News Corp's digital real estate services segment, which includes Realtor.com, this potentially means increased user engagement metrics, more ad impressions, and longer average session durations – all valuable metrics for their advertising-supported business model.

The survey also captures important shifts in financing barriers, with 13.5% citing credit scores and 8.2% noting mortgage qualification challenges. These financing headwinds, combined with recession concerns, suggest the potential for increased traffic to educational content and mortgage resources on Realtor.com, further diversifying engagement with the platform beyond just listings.

• 54.4% of surveyed buyers said a recession would have no impact on their decision to purchase a home
• Inventory shortages and budget constraints are the biggest barriers to entry for buyers
• Declining concerns about overbidding point to a calmer and less competitive market

AUSTIN, Texas, May 20, 2025 /PRNewswire/ -- As economic anxiety intensifies, a new survey from Realtor.com^® reveals that U.S. homebuyers are bracing for a potential recession, but is there a silver lining? While 63.4% of surveyed home shoppers said they expect a recession within the next 12 months, marking one of the highest levels of concern since 2019, nearly 30% indicated that a recession would make them somewhat more likely to purchase a home. This is nearly twice as large as the share who report they'd be less likely to buy a home in a recession (15.8%). The nuanced sentiments signal a unique buying landscape shaped by caution and, on the flip side, opportunity.

"Confidence in the economy has clearly taken a hit amid ongoing headlines around trade, tariffs, and rate uncertainty," said Danielle Hale, Chief Economist at Realtor.com^®. "But while concerns are definitely present, some buyers anticipate that a downturn can bring opportunity. Well-prepared buyers who have been waiting on the sidelines are likely motivated by personal and lifestyle needs like growing families, new jobs, or retirements and these considerations can outweigh short term economic uncertainties."

Economic Uncertainty Isn't Stopping Everyone
There are heightened fears of a recession. But, for the 29.8% of buyers who remain motivated, and even indicate they could be more likely to buy in a downturn, the potential for lower mortgage rates and less competition amid an economic slowdown serve as key incentives. At the same time, 54.4% said a recession would have no impact on their decision to purchase a home. This is a signal that many buyers are driven more by life circumstances than macroeconomic shifts. Only 15.8% of respondents reported they would be less likely to buy in a recession, reinforcing the idea that the housing market may see continued resilience even in a shaky economic climate.

Barriers to Buying: Inventory, Budgets, and Borrowing Challenges
While there is a silver lining for many buyers, another aspect of the market brings challenges. Limited for-sale housing inventory continues to be the biggest roadblock for buyers, with 44.3% citing a lack of homes that meet their needs as a major concern. While listing activity has improved compared to last year, total active inventory remains 16.3% below historical norms, limiting choice and dampening momentum.

Budget constraints were reported as a major issue for 36% of surveyed homebuyers, an issue that could intensify in the coming quarters if inflation picks up due to tariffs, or if interest rates remain elevated. Credit-related challenges are also growing. 13.5% of buyers cited poor credit scores as a barrier while 8.2% struggled with mortgage qualification. With lenders tightening standards and student loan changes impacting credit health, the financing landscape may become more difficult for some buyers to navigate.

A Less Competitive Market Offers Relief for Some
The competitive frenzy of recent years appears to be tapering off. Just 7.7% of surveyed buyers identified overbidding as a top concern in the first quarter of 2025, down from 10.4% a year ago. This trend aligns with increased time on market, a moderate rise in listings, and more stable pricing; all of which point to a slower, less stressful home search experience. For buyers able to act amid the uncertainty, today's conditions may offer more negotiating power, more choice, and less pressure than in recent years.

For more data and complete survey findings please visit here.

Methodology
In order to better understand the sentiment and experiences of buyers, sellers, and renters currently on the market for homes, the Realtor.com Economics team conducts a randomized survey of visitors to listing detail pages on the site, the Site Visitors Survey. Respondents are asked about the reasons they're visiting the site, how they've been engaged with the housing market, and how they feel that current market conditions are impacting their behavior. Surveys are administered randomly to visitors on Realtor.com. For this report, we consider only respondents who indicate that they are home buyers and focus on results from 2025Q1. Weights are calculated by computing the share of survey respondents falling into categories based on age and adjusting these proportions to match the share of all visitors to Realtor.com and similar online real estate marketplaces segmented by age.

About Realtor.com^®
Realtor.com^® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com^® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.

Media contact:  Asees Singh, press@realtor.com

View original content:https://www.prnewswire.com/news-releases/despite-recession-fears-nearly-30-of-home-shoppers-say-a-downturn-could-make-them-more-likely-to-buy-a-home-302459129.html

SOURCE Realtor.com

FAQ

What percentage of home shoppers expect a recession in the next 12 months according to Realtor.com?

According to the Realtor.com survey, 63.4% of home shoppers expect a recession within the next 12 months.

What is the biggest barrier to entry for home buyers in 2025?

Limited housing inventory is the biggest barrier, with 44.3% of buyers citing a lack of homes that meet their needs as a major concern.

How has the competitive nature of the housing market changed in 2025?

The market has become less competitive, with overbidding concerns dropping to 7.7% in Q1 2025 from 10.4% a year ago, indicating a calmer market with more negotiating power for buyers.

What percentage of buyers say a recession would not affect their home-buying decision?

54.4% of surveyed buyers said a recession would have no impact on their decision to purchase a home.

How many home shoppers view a recession as a potential buying opportunity?

29.8% of home shoppers indicated that a recession would make them somewhat more likely to purchase a home, compared to 15.8% who would be less likely to buy.