Provident Bank’s First-Time Home Buyer Survey Reveals That While Homeownership Continues to Be Challenging, Many Americans Are Finding Their Home in Less Than a Year

Rhea-AI Summary

Provident Bank's First-Time Home Buyer Survey reveals insights into generational differences in navigating the housing market. Despite challenges like high mortgage rates and affordable options, many Americans are finding homes in less than a year. Key findings include:

1. Over 40% of Gen Xers have been involved in 5+ bidding wars.
2. Over 50% of Gen X respondents have significantly adjusted their search criteria to stay within budget.
3. Nearly 50% of Millennials and Gen X have settled for older homes needing renovations.
4. Savings accounts remain the main source of down payment capital.
5. Gen X is more likely to consider fintech companies for financing (15%) compared to Gen Z (6%).
6. Traditional banks are still a popular financing source across generations.

The survey, conducted by Survey Monkey for Provident Bank, is based on 1,000 responses and highlights the importance of understanding financing resources in a competitive market.

ISELIN, N.J., Oct. 15, 2024 (GLOBE NEWSWIRE) -- Provident Bank, a leading New Jersey-based financial institution, has released the results of its First-Time Home Buyer Survey, taking stock of the generational differences in how Americans are navigating a complicated housing market. This year’s survey revealed that, not surprisingly, searching for a first home is extremely challenging. The top two factors impacting budgets are high mortgage rates and the lack of homes within an original budget. However, across generations, Americans appear to be buying their first home after only looking less than a year, signaling growing optimism in the market.

Potential homeowners are prolonging the buying process and waiting to make a final purchase:

Searching for a new home is challenging for first-time home buyers across generations. There are frequent bidding wars, which can lead to many making sacrifices for their dream home.

• Over 40% of Gen Xers have been involved in a significant number (5+) of bidding wars during the home-buying process. Comparatively, only 30% of Millennial respondents have had the same experience.
• Over 50% of Gen X respondents have had to significantly adjust their search criteria to stay within budget. Nearly 50% of both Millennials and Gen X respondents noted that they’ve settled for an older home that needs renovations to complete the buying process, compared to only 39% of Gen Z respondents.

Amidst all of these challenges, Americans still look toward traditional financial avenues to complete the home-buying process:

Overall, potential homeowners are still looking to traditional financial institutions to help them through the home-buying process. However, there are clear differences between how generations think about their financing options and the experts available to them.

• Over half of respondents noted that their savings account is their main source of capital for their down payment. The second highest source of capital stems from access to first-time home buyer program grant(s).
• 15% of Gen X respondents will look to a fintech company for financing for buying a first home compared to only 6% of Gen Z respondents. Nearly 56% of Gen X respondents will be speaking to a traditional bank as a source for the financing process in buying their first home.
• Just under 50% of all Millennial respondents noted they would look to a traditional bank for financing to buy their first home.
  

“The findings from this year’s survey support what we’ve been hearing directly from customers - in order to navigate a highly competitive home buying market, understanding all of the financing resources and capital requirements at your disposal is the key to success,” said Margaret Volk, Senior Vice President, and Director of Mortgage and Consumer Lending, at Provident Bank. “Especially as we enter a new phase of the mortgage rate cycle, we believe it is our responsibility to ensure our customers are equipped with the resources and information needed to navigate the financing process to achieve such an important life goal like buying a home.”

The survey was conducted by Survey Monkey, a market research provider, on behalf of Provident Bank. The findings are based on 1,000 responses.

About Provident Bank

Founded in Jersey City in 1839, Provident Bank is the oldest community-focused financial institution based in New Jersey and is the wholly owned subsidiary of Provident Financial Services, Inc. (NYSE:PFS). With assets of $24.07 billion as of June 30, 2024, Provident Bank offers a wide range of customized financial solutions for businesses and consumers with an exceptional customer experience delivered through its convenient network of 140 branches across New Jersey and parts of New York and Pennsylvania, via mobile and online banking, and from its customer contact center. The bank also provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company, and insurance services through its wholly owned subsidiary, Provident Protection Plus, Inc. To learn more about Provident Bank, go to www.provident.bank or call our customer contact center at 800.448.7768.

Media Contact:
Provident Bank
Keith Buscio – keith.buscio@provident.bank

Vested
providentbank@fullyvested.com

FAQ

What are the main challenges for first-time home buyers according to Provident Bank's survey?

The main challenges for first-time home buyers are high mortgage rates and a lack of homes within their original budget. The survey also reveals frequent bidding wars and the need to adjust search criteria or settle for older homes needing renovations.

How long are Americans typically searching for their first home?

According to the Provident Bank survey, Americans across generations are typically finding and buying their first home after looking for less than a year, indicating growing optimism in the housing market.

What are the primary sources of down payment capital for first-time home buyers?

The survey shows that over half of respondents use their savings accounts as the main source of capital for their down payment. The second highest source is access to first-time home buyer program grants.

How do different generations approach financing for their first home purchase?

The survey reveals generational differences in financing approaches. Gen X is more likely to consider fintech companies (15%) compared to Gen Z (6%). Traditional banks remain popular across generations, with nearly 56% of Gen X and just under 50% of Millennials looking to them for financing.

What percentage of Gen X respondents have been involved in multiple bidding wars?

Over 40% of Gen X respondents have been involved in a significant number (5 or more) of bidding wars during the home-buying process, according to the Provident Bank survey.