Research Indicates that Consumers’ Likeliness to Purchase a Home in 2021 Remains High Amid Income Fluctuations
Sponsored by J.P. Morgan Chase
With the summer homebuying season well underway, today, Chase Home Lending released the findings of its new First-Time Homebuyer Study. The survey included more than 1,100 consumers who indicated that they are looking to purchase a home and are actively preparing to buy. Though the COVID-19 pandemic had a considerable impact, 60 percent of respondents said they were likely to purchase in the next 12 months, and 69 percent still see homeownership as an important part of building wealth.
Unsurprisingly, the majority of first-time homebuyers indicated that the COVID-19 pandemic changed their thoughts/plans on buying a home in 2020. Seventy percent of respondents said they were waiting to see how the housing market would play out last year. Change of income (61 percent) and re-evaluating how they would finance their home purchase (58 percent) also had a prominent effect on timelines and urgency to buy.
The study was commissioned to better understand the needs of first-time buyers looking for a home following the pandemic. Homebuying attitudes, behaviors and expectations were evaluated, placing an emphasis on how the events of the past year have impacted confidence, financial readiness and more.
“The events of the last year upended various aspects of our lives, including prospective homebuyers and their plans to purchase,” said Sean Grzebin, Head of Consumer Originations for Chase Home Lending. “Despite possible income changes and prolonged timelines, buying a home as a means to build wealth and stability still resonates with first-time homebuyers. The research shows that they are also open to making lifestyle changes in order to reach their homeownership goals.”
Consumers Take Action in 2021
Only one-in-four first-time homebuyers said they had strong confidence that they would be financially ready to purchase a home in the first half of 2021 – but this didn’t stop them from taking steps to set themselves up for success.
– 7 of 10 respondents made lifestyle changes in order to work toward homebuying success.
– 66 percent have already created monthly budgets and worked to improve their credit score
– More than half of respondents plan to research down payment assistance programs this year; 33 percent have already done so in 2021
– 77 percent of respondents said they are actively saving for a down payment
Confidence Higher Among Black and Latino Respondents
The study also revealed that nearly three-quarters of Black and Latino respondents agree that owning a home is an important step to building wealth, slightly above the overall average of 69 percent. Additionally:
– 48 percent of Black and Latino respondents felt knowledgeable or comfortable with the homebuying process while the average for all respondents came in lower at 40 percent
– 65 percent of minority respondents expect the homebuying process to be enjoyable, which is higher than the overall average of 51 percent
– When it comes to desired features in a home, 51 percent of Black and Latino respondents are looking for dedicated office space in their first home (vs. 45 percent total) and 42 percent want workout space (vs. 34 percent total)
The study is based on the responses of 1,100 U.S.-based consumers fielded between March 10 – 24, 2021 amongst those who have never owned a home. For more information about Chase Home Lending, visit www.chase.com/mortgage.
