Bank of America’s 2025 Homebuyer Insights Report Explores Rising Homebuyer Uncertainty

Every year, Bank of America’s Homebuyer Insights Report explores consumer preferences and behaviors to better understand the goals and challenges facing homeowners and homebuyers. This year, our data highlights what’s keeping homebuyers on the sidelines, the sacrifices Gen Z are making to become homeowners, and the impact of severe weather on homebuyers. Here’s a more in-depth look at our findings:

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See the full 2025 Homebuyer Insights

Homebuyer Uncertainty is at a Three-Year High

As prices and interest rates remain elevated, homebuyers are uncertain about what this means for them. Our data found that 60% of current homeowners and prospective buyers say they’re unsure whether now is the right time to buy, a three-year high. Still, 52% of prospective buyers feel the market has improved compared to a year ago. In fact, 75% expect home prices and rates to fall and are waiting until then to buy a home, a sizable increase from 62% in 2023.

Graph of Prospective homebuyers who say they expect prices and interest rates to fall and are waiting until then to buy a new home poll results, see Show Text Version for more details

62% in 2023, 67% in 2024, 75% in 2025.

Gen Z is Compromising in Order to Buy

In their pursuit of homeownership, Gen Z buyers are finding creative ways to afford their down payments. In 2025, 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. Additionally, 22% reported that they purchased their home with siblings compared to 12% in 2024 and 4% in 2023. Other strategies include using down payment assistance or asking parents/family to help with down payment costs.

 

Severe Weather is Top of Mind for Homebuyers

Prospective buyers are paying close attention to weather in the areas they are looking to buy, and current homeowners are mindful of the risks severe weather poses to their assets. In 2025, 62% of current homeowners and prospective buyers say they worry about severe weather’s impact on their homes. Even more (73%) emphasize the importance of purchasing in areas with lower severe weather risks.

 

This material is provided for your convenience and information only. Bank of America assumes no liability for loss or damage as a result of your reliance on information in this publication. Our goal is for the content of this publication to be accurate as of the date this issue was printed. However, due to rapid changes occurring in the programs, products, and services offered within the home financing industry, we do not guarantee the accuracy or completeness of the information presented.

 

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