What buyers will give up to find an affordable home
A Redfin survey found that younger buyers are more willing to sacrifice safety, and overall, proximity to amenities was lower on the list of must-haves.
Key points:
- Buyers prioritize safety, but Gen Z is most likely to say they would give up some degree of safety if that meant securing a home.
- Being close to health care providers and restaurants were features that buyers were most willing to trade off.
- The top reason for moving in the next year was a desire for more space — except for boomers, who are most concerned about moving somewhere with a lower cost of living.
With home prices still rising and inventory relatively low, many prospective homebuyers are weighing their priorities — and those in the youngest generation are willing to make deeper sacrifices to land a home in their budget.
A new Redfin survey of homeowners and renters who are likely to move in the next year found that would-be buyers are prepared to give up some items on their wishlists, but most prioritize safety, ranking concerns about safety and crime as one of the top reasons they are considering moving. At the same time, however, nearly one in four Gen Z buyers said they would trade off safety if it meant finding an affordable home.
The older generations were less willing to make that sacrifice, with 18.1% of millennials, 17.5% of Gen X and only 5.5% of baby boomers saying they would give up some degree of safety.
Redfin Senior Economist Elijah de la Campa said younger generations are reaching the homebuying age during a housing supply crunch, so they have little choice but to pare down their list of must-haves.
"When the typical household earns less than is needed to buy or rent a typical home, house hunters can't afford not to make sacrifices," de la Campa said.
What homebuyers will give up
While some respondents were willing to move to a less safe place, overall, safety ranked last among the features buyers would trade off.
So, what was more likely to make the chopping block?
The top attribute buyers would sacrifice to secure a house was proximity to their health care providers, with 41% saying it wasn't a must-have. Tying for second place was being near restaurants and having the preferred number of bathrooms (each with 36% of buyers saying they were willing to give up those features), followed by commute time.
Why people are planning to move
While housing costs are top of mind for many buyers, the desire for more space was the No. 1 reason respondents said they wanted to move, with nearly one-third of those surveyed citing that as a factor. It was even more important for Gen Z movers, with more than 41% of the youngest buyers — who may be living in small apartments or with parents — listing it as a priority.
Financial considerations came next, with a lower cost of living (26.4%) and lower home prices (23.4%) cited as key reasons for moving. Safety and being closer to family tied for fourth place.
Looking at individual generations, baby boomers were less likely to prioritize having more space — that feature came in sixth for boomers, while downsizing was their second-most popular reason for moving. But moving somewhere with a lower cost of living was by far the most important factor for that generation, with more than 38% citing it as a reason.
Many are still waiting
An earlier survey from Bright MLS found that 73% of agents said they had a client pause their home search in the last six months, with high borrowing costs and high prices remaining a barrier for many would-be buyers.
In its most recent update, the Atlanta Federal Reserve's Home Ownership Affordability Monitor came in at 68.3 in May — the second-lowest level in more than 15 years.