Nearly 75 Percent of First-time Homebuyers are Optimistic about the Current Housing Market, TD Bank Survey Finds - Seite 2

The survey also revealed first-time homebuyers are willing to spend more on their first homes, with 40% citing they plan to spend $300,000 or more, up 9% from last year.

There’s Still More to Learn for First-Time Buyers

Despite 79% of low-to-moderate income (LMI) respondents expressing confidence or neutrality in their financial literacy regarding mortgages and homebuying, a surprising 46% remain unaware of down payment assistance programs that require lower initial investments.

In addition, over four in five LMI respondents cited the affordability of a down payment (82%) and affordability of a mortgage/other monthly expenses (81%) as one of the top three barriers they face as they begin the homebuying process.

“Down payments have remained an obstacle to the wealth vehicle of homeownership, but there are tools to alleviate some of the burdensome upfront costs,” said Kaminski. “Educating first-time homebuyers about the resources down payment assistance programs can provide, as well as the associated monthly costs of homeownership, can help them accomplish their dream of owning a home and strengthen their financial position over the long-term.”

Forever Homes are Top of Mind, Location Preferences Vary

This year’s data also saw an increase in respondents’ desire for forever homes, with 48% of respondents expressing their intention to purchase one, a 7% uptick from 2023. Conversely, interest in fixer-uppers or starter homes has decreased, with only 52% of respondents considering such properties, down 7% from last year. Among those seeking fixer-upper or starter homes, 40% hope to find a more affordable home.

When it comes to priorities in their home purchase, proximity to schools and workplaces emerged as top concerns for first-time buyers. Over one quarter (26%) cited access to quality schools and childcare as one of their top two considerations, while 22% emphasized being close to their workplace. Additionally, amenities such as backyards or pools (20%), access to dining and shopping (20%) and proximity to family (19%) were among the top priorities.

There's also a notable desire for suburban living among first-time homebuyers. More than two in five (43%) first-time homebuyers prefer suburban areas over city living (28%), small towns (17%), and rural areas (12%).

Urban living is also growing in popularity, with the number of first-time homebuyers who prefer large cities or metro areas increasing by 6% over the last year. Notably, Gen-Z homebuyers are particularly driving the interest in urban living, with 31% expressing a desire for big city/metro area residences, compared to 29% of millennials and only 22% of Gen-X and Baby Boomers.