According to a new RE/MAX report, nearly 8 in 10 prospective homeowners are willing to make adjustments to their homebuying plans to achieve homeownership this year.
Some of those adjustments mentioned in the study include—
- Buying a fixer-upper
- Buying a home with a friend or family member
- Borrowing from friends and/or family members
- Putting less than 20% down
- Buying a multifamily home
- Buying a home with a longer work commute
- Buying a tiny or prefabricated home
- Making an all-cash purchase
And it’s important to note, that more than 9 in 10 respondents were either “somewhat likely” or “very likely” to discuss alternative options with a real estate agent. This shows that people want the knowledge broker—someone who can educate them on all options available.
Not surprisingly, low affordability is the main reason behind the increase in prospective buyers’ readiness to get creative to clear the hurdles between them and homeownership before the end of 2024.
RE/MAX’s survey factored in responses from 1,000 individual U.S. residents.
Affordability remains a key concern for homebuyers as home prices, interest rates, and inventory continue to fluctuate. Despite today’s economic environment, it’s clear that homeownership is still a priority for many, and the results of our survey prove that buyers are willing to go outside their comfort zone to reach their goal. Nick Bailey - President and CEO of RE/MAX, LLC
MARKET CONDITIONS HAVE MADE AFFORDABILITY PRIORITY #1
Spend enough time shopping for homes in a difficult housing market—with rising home prices, low inventory, and fluctuating mortgage rates—and your list of must-haves tends to shrink, especially if you’re determined to buy a home within the next 12 months.
According to the RE/MAX study, 43% of respondents are open to considering adjustments to their home buying plans that involve both—
- Property type: including multifamily, tiny homes, and fixer-uppers
- Financing options: including sub-20% down payments, purchasing with a friend/family member, borrowing from friends/family members, or making an all-cash purchase
Read on to learn more about specific adjustments prospective homebuyers are willing to make this year to get into a home of their own.
MULTIFAMILY
Over a quarter of consumers say they’re open to buying a multifamily home, defined as a property occupied by the homeowner, with separate units rented by non-owner tenants.
Over half of these are willing to buy a condo, attached home, or townhome to reduce potential maintenance costs.
Among the 29% of respondents who say they were willing to purchase a multifamily home:
- 61% want to purchase an investment property
- 50% are willing to buy a multifamily property to split the mortgage payment
- 47% want to live in the same multifamily home as family and/or friends without having to share living space
FIXER-UPPER
Of the 56% of respondents saying they would consider buying a fixer-upper property in need of remodeling (either cosmetic or structural), 73% of those say they would do say they would do so to get a home at a lower listing price
