Most of America’s aspiring homeowners are waiting for rate cuts before purchasing new home

Chicago, Illinois, May 3, 2024 — A new Ipsos poll conducted on behalf of BMO reveals that most (71%) of America’s aspiring homeowners are waiting for rate cuts before they would consider engaging in a new home purchase. What’s more, the proportion of aspiring homeowners that hold this sentiment has increased by statistically significant margins (+7 pts), over the past year. Among those who do plan to buy a home, as many as three in ten (30%) say they plan to pull money from their 401(k)-retirement plan to help cover the cost. Inclination to draw on the 401(k) tends to be higher among Gen Z (34%) and millennials (31%) than it is for Gen X (25%) and boomers (16%).

Notably, around two in three (68%) indicate that housing costs generate at least some degree of financial anxiety for them with around the same proportion (67%) reporting that owning a home is one of their biggest life aspirations, a figure which rises to almost three-quarters (73%) among both Gen Z and millennials. Despite these sentiments, most non-homeowners have conceded that the dream of home ownership is either unattainable (48%) or they aren’t sure if it will be attainable (25%), in their lifetime.

More than two in five (43%) of Americans believe that rising home insurance costs may impact their ability to keep or buy a home, a figure which exceeds a majority for both Gen Z (60%) and millennials (55%). Around the same proportion (41%) indicate that environmental deterrents such as water availability, storms, flooding, heatwaves, and wildfires will impact where they choose to live in the next five years, a figure which once again surpasses a majority for both Gen Z (58%) and millennials (53%).

Overall, three in five (60%) Americans express heightened levels of concern regarding the direction the cost of living has taken, over the past three months, and the vast majority (81%) are feeling at least some degree of anxiety about their overall financial situation. Three in four (74%) report setting financial goals for themselves, though just two in five (40%) set an annual household budget while closer to one in three (32%) have a written financial plan.

Statistically higher proportions (45%; +3 pts), compared to a year ago, perceive themselves as making real financial progress, though still fewer than half report feeling this way. When asked to specify impediments to financial progress, as many as three in ten cite housing costs (30%) and/or credit card debt (30%) as barriers.

About the Study

These are the findings of an Ipsos survey conducted on behalf of the BMO. Fieldwork was conducted between February 28 and March 18, 2024. A total of n=2,505 Americans aged 18+ participated in the survey which was fielded via the Ipsos’ panel. Quotas and weighting were used to ensure the sample's composition reflects that of the American population according to census parameters. This survey has a credibility interval of +/- 2.4 per cent 19 times out of 20, of what the results would have been had all American adults 18+ been surveyed.

For more information on this Factum, please contact:

James Cottrill
Senior Account Manager, Ipsos Public Affairs
+1 416 324 2900
[email protected]

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