Despite
strong
interest
in
home-buying,
affordability
challenges
and
misconceptions
about
down
payments
are
deterring
many
potential
buyers,
according
to
a
new
survey
from

NeighborWorks
America.

The
nonprofit
organization
reports
that
27%
of
U.S.
adults
say
they
plan
to
buy
a
home
within
the
next
year.
However,
among
those
who
are
postponing
or
not
planning
to
purchase,
one-third
cite
insufficient
income
relative
to

home
prices
as
the
primary
obstacle.

An
additional
22%
are
waiting
for
home
prices
to
fall
before
making
an
offer.

“The
mismatch
between
home
prices
and
income
is
freezing
out
individuals
and
families
who
want
to
buy
a
home,”
said
Marietta
Rodriguez,
president
and
CEO
of

NeighborWorks
America.
“We
believe
persistent
myths
about
downpayment
requirements
to
buy
a
home
are
also
holding
back
consumers
from
entering
the
home
buying
market.”

Down
payment
assumptions
often
incorrect

The
survey
found
that
nearly
40%
of
respondents
believe
they
need
at
least
a
15%
down
payment
to
qualify
for
a

mortgage.

In
reality,
the
median
down
payment
in
2024
for

first-time
buyers
was
9%
—
with
many
able
to
put
down
as
little
as
3%
through
programs
offered
by
NeighborWorks
network
organizations.
These
results
echo
recent


National
Association
of
Realtors
findings
regarding

down
payment
misconceptions.

Last
fiscal
year,
NeighborWorks
America
helped
more
than
16,000
people
become
homeowners.

“NeighborWorks
organizations
across
the
country
are
expert
in
advising
qualified
buyers
on
how
to
access
down
payment
assistance
programs
that
help
bridge
affordability
gaps,”
Rodriguez
said.

Demographic
splits

The
report
also
highlights
demographic
differences
in
home-buying
intentions.

While
39%
of
both
Gen
Z
and
Millennials
say
they
hope
to
purchase
a
home
in
the
next
12
months,
only
23%
of
Gen
X
and
10%
of
Baby
Boomers
say
the
same.

Interest
in
homeownership
is
particularly
strong
among
Black
adults,
41%
of
whom
say
they
intend
to
buy
in
the
coming
year.
That
compares
to
32%
of
Hispanic
adults
and
25%
of
White
adults.
The
Black
homeownership
rate
in
2024
was
46.4%
—
below
the
national
average
of
65.7%.

“I’m
excited
to
see
young
people
interested
in
homeownership,”
Rodriguez
said.
“However,
our
survey
clearly
shows
that
a
large
number
of
people
are
discouraged.
In
fact,
nearly
one-third
of
adults
believe
homeownership
is
out
of
reach
for
them,
and
another
14%
are
unsure
homeownership
is
attainable.

“Getting
the
right
information
to
consumers
about
the
process,
programs
and
possibilities
to
achieve
homeownership
is
what
NeighborWorks
organizations
are
here
to
do
every
day.”