CHARLOTTE, N.C. — A new Bank of America report reveals rising uncertainty in the U.S. housing market, with 60% of homeowners and prospective buyers unsure whether it’s a good time to buy a home—marking a three-year high in housing market ambiguity.
The figure has steadily climbed from 48% in 2023 to 57% in 2024, according to the 2025 Bank of America Homebuyer Insights Report, released in collaboration with the Bank of America Institute.
Despite the uncertainty, many prospective buyers are cautiously optimistic. More than half (52%) believe the market has improved compared to a year ago, while 75% are waiting for a decline in home prices and interest rates before purchasing—a noticeable increase 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,” said Matt Vernon, Head of Consumer Lending at Bank of America. “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 Making Sacrifices to Achieve Homeownership
Younger generations, particularly Gen Z, are taking increasingly creative steps to make homeownership possible. According to the report:
- 30% of Gen Z homeowners took on an extra job to fund their down payment, up from 24% in 2023.
- 22% bought homes with siblings, a steep rise from 4% just two years ago.
- 34% of prospective Gen Z buyers would consider living with family or friends while they save.
- 21% plan to fund their down payment with a loan from parents or family, compared to 15% of the general population.
“Even with the challenges they face, younger generations still understand the long-term value owning a home offers,” Vernon said. “They are finding creative ways to afford down payments and working hard to improve their financial futures.”
Severe Weather Influencing Buying Decisions
Environmental concerns are also shaping homebuying behavior. 62% of homeowners and potential buyers cite severe weather and natural disasters as a key concern in their housing decisions. Nearly three-quarters (73%) say it is important to purchase a home in a location with lower weather-related risks.
The report also finds that:
- 38% of buyers have changed their preferred location due to weather risk.
- 23% of current homeowners have experienced property damage or loss from severe weather in the past five years.
- 65% are now actively preparing their homes for potential climate impacts.
Report Methodology
The insights are based on a national survey conducted by Sparks Research between March 20 and April 22, 2025. The online survey collected responses from 2,000 U.S. adults (1,000 homeowners and 1,000 renters), all of whom are involved in household financial decisions and have either owned or plan to own a home. The results carry a margin of error of ±2.2%.
As housing costs, economic pressures, and climate concerns continue to shape buyer behavior, the report underscores a central theme: while caution prevails, the desire for homeownership remains strong—especially among younger generations determined to turn long-term dreams into reality.
