Ready to Sign on the Dotted Line: TD Bank Survey Reveals Majority of First-Time Homebuyers Express Optimism and Financial Readiness
As home supply remains constrained, homebuyers seek alternatives with nearly one-third of first-time buyers pursuing new construction
As mortgage rates have recently started to decrease, as reported by the National Association of Realtors, optimism and demand persist among first-time homebuyers. TD's annual survey found that three in four respondents (
“Optimism in the housing market is a positive sign for first-time homebuyers, as it encourages them to become more strategic and adaptable in their journey to homeownership," said Steve Kaminski, Head of
TD Bank surveyed 1,001 Americans planning to purchase their first home in 2025, gathering insights into their outlook on the housing market and how prepared they feel to navigate challenges like home inventory and purchasing costs.
Buyers Assess and Plan for Financial Readiness Amid Affordability Challenges
While
In response to rate concerns, many buyers report taking proactive steps to improve their financial readiness. Eighty-eight percent of respondents have taken actions to boost their credit score in anticipation of purchasing a home, with
To combat challenges associated with saving, some first-time homebuyers have turned to family for help, with
First-Time Homebuyers Turn to Professionals for Guidance
For many first-time homebuyers, navigating the homebuying process can feel daunting. In fact, more than half of all respondents (
Beyond expert advice, confidence is rising among individuals of all financial backgrounds. Three in five (
"Resources and guidance help first-time buyers move from initially feeling overwhelmed to feeling more confident and ready to navigate the homebuying process," said Kaminski. "By leveraging these tools, prioritizing financial readiness, engaging in early discussions with trusted lenders, reducing debt and increasing savings, buyers can make more informed decisions and feel empowered to take the next step toward homeownership."
Custom Homes Gain Popularity as Buyers Face Limited Options
As demand for homeownership remains strong, a limited supply of existing homes continues to challenge first-time buyers. With many struggling to find homes within their budget, new construction is becoming a more appealing option, with nearly one-third of respondents (
Data shows that younger generations are particularly interested in building their own homes, with
Even if they’re not building from scratch, first-time homebuyers are still looking to personalize their new homes to their needs, with
However, with a labor shortage of about 200,000 to 400,000 construction workers, according to the National Association of Home Builders, along with challenges around land availability and material costs, new construction and home renovations remain a difficult path for first-time homebuyers. Despite these challenges, younger homebuyers' growing interest in building reflects their determination to find solutions in a competitive market.
Other Top Considerations
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Family is a Top Priority: Three in ten respondents (
29% ) said being close to family is one of their top three priorities when purchasing a home.
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Homeownership as a Wealth Builder: The majority of first-time homebuyers (
88% ) view buying a home as a smart long-term investment. Among generations, nearly half (46% ) of Gen Z respondents are eager to use homeownership as their starting point for building wealth, highlighting the shift toward homeownership as a key financial strategy.
- Millennials Plan Ahead: Half of Millennials have factored in homebuying costs such as utilities, property taxes, maintenance and insurance, demonstrating thorough research and financial preparedness.
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Twenty Percent is in the Past: As a down payment can be one of the biggest obstacles to purchasing a home,
43% of LMI respondents believe that a10% down payment is necessary, as opposed to traditional expectations of20% . Working alongside a TD Bank Mortgage Loan Officer, you can explore more affordable loan programs consisting of low down payment options, making the path to homeownership more accessible.
Survey Methodology
This CARAVAN survey was conducted by Big Village among a sample of 1,001
About Big Village
Big Village Insights is a global research and analytics business uncovering not just the ‘what’ but the ‘why’ behind customer behavior, supporting clients’ insights needs with agile tools, CX research, branding, product innovation, data & analytics, and more. Big Village Insights is part of Bright Mountain Media. Find out more at https://big-village.com/.
About TD Bank, America's Most Convenient Bank®
TD Bank, America's Most Convenient Bank, is one of the 10 largest banks in the
TD Bank is a subsidiary of The Toronto-Dominion Bank, a top 10 North American bank. The Toronto-Dominion Bank trades on the
View source version on businesswire.com: https://www.businesswire.com/news/home/20250320800627/en/
Nicole Constantine
nicole.constantine@td.com
Source: TD Bank