Executive Summary

High interest rates and home values marked continued affordability challenges for Americans who aspire to buy a home. While these trends reshape the homebuying process and buyers’ plans and preferences, the behaviors, intentions and influences for many prospective buyers have remained relatively stable. Amid the flurry of challenges, much of the for-sale market remains following the pandemic-catalyzed new ‘normal.’ 

The 2023 Consumer Housing Trends Report (CHTR) provides a snapshot of what housing consumers are thinking and doing in early-to-mid 2023. In this report, we take a deeper look at prospective buyers (household decision makers that intend to buy a home in the next year); In other reports, we examine successful buyers, renters, sellers, and new construction buyers more closely. Information about who prospective buyers are in 2023 can equip consumers with the tools they need to make informed decisions in this transforming housing market landscape.

Survey Methodology

Research Approach

In order to gain a comprehensive understanding of U.S. buyers, Zillow Group Population Science conducted a nationally representative survey of more than 11,800 prospective buyers. The study was fielded between April and July 2023. Wherever possible, survey questions from previous years were asked in the same manner this year to allow for the measurement of year-to-year trends in key areas.

For the purpose of this study, “prospective buyers” refers to household decision makers 18 years of age or older who intend to buy a home in the next year.

Sampling & Weighting

Results from this survey are nationally representative of prospective buyers. To achieve representativeness, ZG Population Science used a two-prong approach. First, the initial recruitment to the sample was balanced to all buyers from the U.S. Census Bureau, 2021 American Community Survey (ACS) on the basis of age, relationship status, income, ethnicity/race, education, region and sex. Additional targeted subgroups were sampled based on all key household demographic characteristics. Second, a survey of the General US Population was used to create calibration weights to ensure that the distribution of survey respondents matched the U.S. population of US adults that intend to buy a home in the next year with respect to a number of key demographic characteristics obtained. This survey of the General US Population was recruited and weighted to match demographic characteristics from analyses of the U.S. Census Bureau’s 2021 American Community Survey and 2022 Current Population Survey Annual Social and Economic Supplement (CPS ASEC). 

Quality Control

To reduce response bias, survey respondents did not know that Zillow Group was conducting the survey. Several additional quality control measures were also taken to ensure data accuracy: 

• We identified and terminated any professional respondents, robots or those taking the survey on multiple devices. 
• Completion times were recorded to ensure that surveys submitted by the fastest respondents, who may have rushed through the survey, did not provide poor quality data. If necessary, these respondents were removed from the sample. 
• In-survey quality control checks identified illogical or unrealistic responses. 

Additional Data Sources

Unless otherwise specified, estimates in this report come from the Consumer Housing Trends Report (CHTR) 2023, and year-over-year comparisons also use data from CHTR 2022. To provide a fuller picture of the state of prospective buyer characteristics, preferences and behaviors, we also analyzed data from other sources:

• U.S. Census Bureau, 2021 American Community Survey – The most recently available dataset from the U.S. Census Bureau’s survey of the U.S. population. The ACS is the nation’s largest survey and is based on a probability sample; as such, it is considered one of the leading sources of information on U.S. population and housing.
• U.S. Census Bureau, 2022 Current Population Survey Annual Social and Economic Supplement – The CPS ASEC offers the most recent demographic estimates on the US population.
• Zillow.com website metrics – To provide additional context for survey results, ZG Population Science also examined internal Zillow data on listing information. 

The Typical Prospective Buyer

In this section, we provide a high-level overview of key prospective buyer information. According to recent ZG Population Science research, 23% of US adults say they intend to buy a home in the next year – far greater than the 3-5% that have successfully purchased a home in recent years, according to estimates from the U.S. Census Bureau’s 2021 American Community Survey and 2022 Current Population Survey Annual Social and Economic Supplement (CPS ASEC).

Age

The median age of prospective buyers is 39, while the average is similar (40 years old). About three in five prospective buyers (62%) were born before 1980; and about one in five (22%) are in their twenties or younger, while roughly a tenth (10%) are in their sixties or older.

Younger adults are more likely to report plans to buy a home than their older counterparts. Older prospective buyers, however, punch above their weight when it comes to turning aspiration into success: Prospective buyers in their 70s and older are about 3.5 times as likely as those in their 30s and 4.8 times as likely as those in their 40s to successfully buy.

Age Group	Percent of Prospective Buyers	Percent of Successful Buyers	Percent of Household Decision Makers	Percent of US Adults
Ages 18-29	22%	20%	15%	20%
Ages 30-39	30%	25%	18%	18%
Ages 40-49	26%	16%	16%	16%
Ages 50-59	12%	16%	17%	16%
Ages 60-69	7%	13%	17%	16%
Ages 70+	3%	9%	17%	15%

Source: Prospective buyer estimates come from ZG Population Science General Population survey, Other estimates from Census Bureau, 2022 Current Population Survey Annual Social and Economic Supplement

Consistent with age, the largest generational group of buyers is between 29 and 43 years old in 2023 — the group colloquially known as “Millennials.” About 37% of buyers are Millennials.

Across generations, there are more prospective buyers than successful. However, older generations are more likely to convert intent to buy into reality. Silent Generation prospective buyers are about 4.9 times as likely as their Gen Z counterparts to successfully purchase a home. Baby Boomer prospective buyers are about 2.6 times as likely as their Gen X counterparts to successfully buy.

Generation [1]	Percent of Prospective Buyers	Percent of Successful Buyers	Percent of Household Decision Makers	Percent of US Adults
Gen Z (18-28)	20%	17%	13%	18%
Millennial (29-43)	43%	37%	27%	26%
Gen X (44-58)	27%	23%	24%	24%
Baby Boomer (59-78)	10%	21%	30%	27%
Silent Generation (79+)	<1%	3%	7%	5%

 

Race & Ethnicity

About three in five prospective buyers are non-Hispanic white or Caucasian (61%), similar to the overall share of the U.S. adult population that is white (61%) buyer lower than the approximate two thirds of successful buyers (69%). Black and Latinx prospective buyers are similarly likely to White adults to report intent to buy a home, but are about half as likely to succeed.

Race & Ethnicity	Percent of Prospective Buyers	Percent of Successful Buyers	Percent of Household Decision Makers	Percent of US Adults
White or Caucasian	61%	69%	64%	61%
Latinx or Hispanic	18%	12%	12%	12%
Black or African American	13%	7%	15%	17%
Asian or Pacific Islander	4%	7%	5%	6%
Other race	4%	5%	4%	5%

Source: Census Bureau, 2021 American Community Survey

Region

The largest share of prospective buyers live in the South (34%), followed by the West (29%). Smaller shares live in the Midwest (19%) and Northeast (18%). The geographic distributions of prospective and successful buyers suggest that prospective buyers in the South and Midwest are more likely to succeed than those in the Northeast and West.

Region	Percent of Prospective Buyers	Percent of Successful Buyers	Percent of Household Decision Makers	Percent of US Adults
South	34%	41%	38%	38%
West	29%	22%	23%	24%
Midwest	19%	23%	21%	21%
Northeast	18%	14%	17%	17%

Source: Census Bureau, 2022 Current Population Survey Annual Social and Economic Supplement

Gender Identity & Sexual Orientation

Prospective buyers are slightly more likely to identify as LGBTQ+ (12%) than successful buyers (9%). While LGBTQ+ successful buyers have similar incomes to cisgender heterosexual buyers, LGBTQ+ prospective buyers are more likely to report an annual household income under $50,000 (21% versus 15%) and less likely to report making at least $100,000 (50% versus 57%). These lower incomes, among other inequalities, may help explain why LGBTQ+ adults are more represented among prospective buyers than successful ones.

Income

The median prospective buyer reports a household income between $100,000 to $124,999. Unsurprisingly, prospective and successful buyers tend to have higher household incomes than the U.S. population overall. The annual median household income among successful buyers is approximately $96,590, compared to the overall national median (2022) of $70,784. [2]

Income	Percent of Prospective Buyer Households	Percent of Successful Buyer Households	Percent of All Households
Less than $50,000	16%	19%	36%
$50,000 – $99,999	28%	27%	28%
$100,000 or more	56%	42%	36%

Source: Census Bureau, 2022 Current Population Survey Annual Social and Economic Supplement

Education

Prospective buyers tend to be more educated than the overall population of U.S. adults: 54% of prospective buyers have at least a four-year degree, higher than 35% of overall U.S. adults. 

Education	Percent of Prospective Buyers	Percent of Successful Buyers	Percent of Household Decision Makers	Percent of US Adults
High School Diploma or Less	27%	24%	35%	39%
Some College	19%	28%	27%	26%
Four-year College Degree	29%	29%	24%	22%
Postgraduate	25%	20%	14%	13%

Source: Census Bureau, 2022 Current Population Survey Annual Social and Economic Supplement

Relationship Status

Prior research has shown that the purchase of a home is often tied to family formation or other life events, like a divorce or separation. This relationship between homeownership and family formation helps explain why over two thirds of buyers are married/partnered (70%) and almost a sixth (15%) have been married in the past. 

Relationship Status	Percent of Prospective Buyers	Percent of Successful Buyers	Percent of Household Decision Makers	Percent of US Adults
Never Married	22%	15%	18%	25%
Married or Partnered	70%	70%	59%	60%
Divorced, Separated or Widowed	9%	15%	23%	16%

Source: Census Bureau, 2022 Current Population Survey Annual Social and Economic Supplement

Household Composition [3]

Buyer households are more likely to report having at least one pet (78%) than a child (40%). Buyer households are also more likely to have a pet than homeowners who did not move in the past year (61%). Dogs are the most common pet among buyer households (68% report having at least one) followed by cats (47%).

In Household	Percent of Prospective Buyers	Percent of Successful Buyers	Tenured Homeowner Households		All Households [4]
Children under 18 [5]	44%	40%	38%		36%
Dog	70%	68%	46%		38%
Cat	52%	47%	34%		22%
Another pet	21%	14%	10%		10%
NET: Any pet	80%	78%	61%		50%

 

Climate risks, disasters impact where prospective buyers shop

Climate change is hitting home

Most prospective buyers say that at least one climate risk (flood, hurricane, wildfire, etc) impacted where they shop for a home (83%). Flood was the most commonly impactful risk (41%), followed by wildfires and extreme temperatures (both 37%). 

Climate risks impacted where prospective buyer shopped for a home	Total	Gen Z (Ages 18-28)	Millennial (Ages 29-43)	Gen X (Ages 44-58)	Boomers + Silent Gen (59+)
Flood	41%	36%	42%	41%	44%
Hurricane	33%	33%	36%	30%	22%
Wildfires	37%	39%	37%	36%	37%
Drought	31%	30%	35%	27%	23%
Extreme temperatures	37%	37%	44%	30%	26%
Other	3%	4%	2%	3%	5%
At least one climate risk	83%	84%	86%	82%	70%
None	17%	16%	14%	18%	30%

 

Climate risks impacted where prospective buyer shopped for a home	Total	18-29	30-39	40-49	50-59	60+
Flood	41%	35%	42%	43%	43%	44%
Hurricane	33%	33%	37%	33%	28%	22%
Wildfires	37%	39%	37%	39%	29%	35%
Drought	31%	30%	36%	32%	23%	23%
Extreme temperatures	37%	37%	44%	38%	27%	24%
Other	3%	4%	2%	2%	5%	4%
At least one climate risk	83%	84%	86%	88%	75%	69%
None	17%	16%	14%	12%	25%	31%

 

Prospective buyers in the western United States were most likely to say that at least one climate risk impacted where they home shop (90%). Midwestern prospective buyers were the least likely: only about three in four (77%) said the same.

Climate risks impacted where prospective buyers shop for a home	Total	Midwest	Northeast	South	West
Flood	41%	41%	37%	40%	45%
Hurricane	33%	30%	32%	28%	40%
Wildfires	37%	37%	34%	32%	43%
Drought	31%	27%	36%	26%	35%
Extreme temperatures	37%	35%	37%	31%	45%
Other	3%	5%	2%	3%	2%
At least one climate risk	83%	77%	85%	79%	90%
None	17%	23%	15%	21%	10%

 

Climate risks impacted where prospective buyers shop for a home	Total	Midwest	Northeast	South	West
At least one climate risk	83%	77%	85%	79%	90%
None	17%	23%	15%	21%	10%

 

When asked how impactful climate risks are on where they shop, about half of prospective buyers (49%) said they were very or extremely impactful. A larger share said they were at least somewhat impactful (72%). 

Among generations, Millennial prospective buyers were the most likely to consider climate risks as extremely impactful (33%). While other general population research has found that Gen Z is more likely to report taking action on climate change and feeling anxious about the issue, Gen Z prospective buyers do not report the same extreme impact of climate risks when shopping for a home (only 15% considered it extremely impactful – half the rate of Millennial prospective buyers). 

The geographic distribution of Gen Z prospective buyers may help explain why they are less likely to consider climate risks extremely impactful on where they home shop. Prospective buyers in the Western US are most likely to say that at least one climate risk impacted where they home shop (90% versus 85% in the Northeast, 79% in the South and 77% in the Midwest). Gen Z prospective buyers, however, are underrepresented in the West: Only 14% of Western prospective buyers are Gen Z, versus 23% in the South and 22% in the Midwest and Northeast.

On where they home shop, climate risks are	Total	Gen Z (Ages 18-28)	Millennial (Ages 29-43)	Gen X (Ages 44-58)	Boomers + Silent Gen (59+)
Extremely impactful	26%	15%	33%	27%	19%
Very impactful	23%	22%	22%	25%	20%
Somewhat impactful	23%	34%	21%	19%	23%
Not very impactful	15%	18%	14%	13%	15%
Not at all impactful	14%	11%	11%	16%	24%
NET: Very/extremely impactful	49%	37%	55%	52%	39%
NET: Not at all/not very impactful	28%	29%	25%	29%	39%

 

Climate risks are	Total	18-29	30-39	40-49	50-59	60+
Extremely impactful	26%	16%	30%	37%	17%	19%
Very impactful	23%	22%	23%	24%	21%	18%
Somewhat impactful	23%	33%	21%	18%	22%	22%
Not very impactful	15%	17%	15%	10%	18%	16%
Not at all impactful	14%	12%	11%	11%	22%	25%
NET: Very/extremely impactful	49%	38%	53%	61%	38%	37%
NET: Not at all/not very impactful	28%	28%	26%	21%	39%	41%

 

About half of prospective buyers (49%) say climate risks are very or extremely impactful on where they shop for a home. For prospective buyers out West, that share is ten points higher (59%). 

Climate risks are	Total	Midwest	Northeast	South	West
Extremely impactful	26%	21%	27%	21%	35%
Very impactful	23%	21%	22%	22%	25%
Somewhat impactful	23%	24%	23%	24%	21%
Not very impactful	15%	17%	15%	16%	11%
Not at all impactful	14%	17%	12%	16%	9%
NET: Very/extremely impactful	49%	42%	50%	43%	59%
NET: Not at all/not very impactful	28%	34%	27%	33%	20%

 

Half of prospective buyers stick with the same climate risks

About half of prospective buyers (49%) say they are considering moving to area(s) with the same climate risks as where they currently live. About a quarter say they’re considering areas with more risks (27%) and another approximate quarter say they’re considering areas with fewer risks (23%).

Compared to where they live now, prospective buyers are considering moving to places with	Total	Gen Z (Ages 18-28)	Millennial (Ages 29-43)	Gen X (Ages 44-58)	Boomers + Silent Gen (59+)
Fewer climate risks	23%	21%	25%	21%	24%
More climate risks	27%	19%	36%	25%	15%
The same climate risks	49%	60%	39%	54%	61%

 

Compared to where they live now, prospective buyers are considering moving to places with	Total	18-29	30-39	40-49	50-59	60+
Fewer climate risks	23%	22%	25%	23%	24%	25%
More climate risks	27%	18%	34%	37%	16%	15%
The same climate risks	49%	59%	41%	40%	61%	61%

 

Repeat buyers feel the heat

Despite trending younger, prospective buyers that say they intend to buy a home for the first time are less likely to say that at least one climate risk impacted where they shop for a home: About 78% of first-timers say at least one climate risk impacted where they shop, versus 86% for prospective repeat buyers.

Climate risks impacted where prospective buyer shop for a home	Total	First-Time	Repeat
Flood	41%	38%	43%
Hurricane	33%	28%	35%
Wildfire	37%	34%	38%
Drought	31%	26%	34%
Extreme temperatures	37%	31%	40%
Other	3%	5%	2%
At least one climate risk	83%	78%	86%
None	17%	22%	14%

 

While repeat buyers are more likely to say that climate risks are very or extremely impactful on where they home shop (53% of repeat buyers versus 42% of first-timers), first-time buyers are more likely to say that climate risks are somewhat impactful (27% of first-timers versus 20% of repeat buyers). In aggregate, about 69% of first-timers say climate risks are at least somewhat impactful – slightly trailing 73% of repeat buyers. First-time and repeat buyers are similarly likely to say that climate risks are not very or not at all impactful.

Climate risks are	Total	First-Time	Repeat
Extremely impactful	26%	23%	28%
Very impactful	23%	19%	24%
Somewhat impactful	23%	27%	20%
Not very impactful	15%	15%	14%
Not at all impactful	14%	15%	13%

 

First-time and repeat buyers are similarly likely to say they are considering moving to places with fewer climate risks. Repeat buyers, however, are more likely to say they are considering places with more climate risks (31% versus 21% of would-be first-time buyers). First-time buyers are, conversely, more likely to say they are sticking with the same climate risks as their current home (56% versus 45% of repeat buyers).

Repeat buyers being more likely to report shopping in areas with more climate risks may explain why they are more likely to say that these climate risks are highly impactful: Shopping in an area with higher flood risk, for example, means that prospective buyers have additional considerations like levies, infrastructure, elevation, and insurance. 

Compared to where they live now, prospective buyers are considering moving to places with	Total	First-Time	Repeat
Fewer climate risks than where I live now	23%	24%	23%
More climate risks than where I live now	27%	21%	31%
The same climate risks as where I live now	49%	56%	45%

 

Despite climate risks, first-timers may accept what they can afford

Prospective buyers that intend to buy for the first time typically have lower incomes than repeat buyers (the median first-timer reports a household income of $75,000 to $79,999, versus $125,000 to $149,999 for prospective repeat buyers). First-timers also generally cannot tap profits from a previous home sale (except in rare cases like selling a partner’s home or an inherited home). The median first-time prospective buyer is 35 years old – 5 years younger than the typical repeat buyer; that’s 5 fewer years to save and build credit – which can translate to more hurdles to making a competitive offer or securing home financing.

These challenges may help explain why first-time buyers are less likely to report high impact of climate risks on their home shopping criteria: Their homebuying expectations match their budgets and purchasing power.

What Prospective Buyers Want in a Home

Home office, please!

About two thirds (64%) of prospective buyers considered an extra room to use as a home office as very or extremely important. And about half (51%) said the same about a separate structure on the property to use as a home office.

Considered very/extremely important	Total	First-Time	Repeat
An extra room to use as a home office	64%	51%	70%
A separate structure on the property to use as a home office	51%	39%	57%

 

To no surprise, employed prospective buyers were more likely to place high importance on an extra room for a home office (66% of employed, 70% of full-time workers) and a separate structure to use as a home office (55% of employed, 59% of full-timers).

Considered very/extremely important	Total	Full-time employed	Employed	Not employed
An extra room to use as a home office	64%	70%	66%	47%
A separate structure on the property to use as a home office	51%	59%	55%	23%

 

It only takes one day of remote work per week to drive high importance of home office space. Only half of prospective buyers that always work at their employer’s location consider an extra room for a home office as very or extremely important (48%). However, those that work remotely for just 1 day per week are significantly more likely to report high importance (71%). 

Considered very/extremely important	Among employed prospective buyers, number of days per week worked remotely
	0 days	1 day	2 days	3 days	4 days	5+ days
An extra room to use as a home office	48%	71%	71%	75%	66%	73%
A separate structure on the property to use as a home office	32%	57%	62%	62%	66%	59%

 

In the Western United States, the largest share of prospective buyers considered each home office option as highly important: 72% about an extra room and 64% about a separate structure. Northeasterners followed (68% and 58% respectively).

Considered very/extremely important	Total	Midwest	Northeast	South	West
An extra room to use as a home office	64%	53%	68%	60%	72%
A separate structure on the property to use as a home office	51%	40%	58%	43%	64%

 

A higher concentration of tech workers in the West and Northeast likely helps explain the higher importance of home office space. About a third (33%) of prospective buyers out West said at least one member of their household works in an information technology industry like hardware or software. Northeastern prospective buyers saw similarly high representation (30%), while midwestern (21%) and southern (16%) prospective buyers were less likely to report a tech worker in their household.

Considered very/extremely important	Total	Tech worker in household	No tech worker in household
An extra room to use as a home office	64%	78%	59%
A separate structure on the property to use as a home office	51%	69%	46%

 

Traditional or Contemporary floor plan?

A majority of prospective buyers (54%) said their ideal home would have a contemporary open floor plan. About one in five (22%) said they preferred a traditional closed floor plan, and the remaining quarter (24%) said they had no preference.

First-time prospective buyers were more likely to say that they had no preference (31% versus 20% of repeat prospective buyers), while their repeat counterparts were more likely to idealize an open floor plan (58% versus 47%). Preference for a closed floor plan did not differ significantly (22% for both).

Prospective Buyers Trend More Relaxed

Successful buyers more likely to be hurried

Unsurprisingly, successful buyers were more likely to report a short (19%) or medium (41%) timeline to buy a home than were prospective buyers (12% and 38% respectively). About half of prospective buyers (50%) described their homebuying timeline as relaxed – versus 40% of successful buyers.

Over half say they’ve been shopping for at least 6 months

Over half (58%) of prospective buyers report shopping for at least the past 6 months.  Close to one in five said they had shopped for between 1 and 2 years, and about one in seven (14%) says they’ve been shopping for 3 years or more.

Would-be repeat buyers were more likely to report searching for at least 6 months (62%, versus 51% of prospective first-time buyers).

	Total	First-Time	Repeat
1 month or less	15%	19%	12%
2 to 5 months	27%	30%	26%
6 to 11 months	26%	22%	29%
1 to 2 years	18%	15%	19%
3 years or longer	14%	14%	14%
NET: 6 months or longer	58%	51%	62%

 

When asked why they searched for each duration, waiting for the market to become more favorable to buyers is the most common explanation. Almost half (49%) of prospective buyers reported it as a reason for the time they had spent home shopping. Very few homes in their price range was the second-most-common explanation, according to 43% of prospective buyers.

	Total	1 month or less	2 to 5 months	6 to 11 months	1 to 2 years	3+ years
Very few homes are within my price range	43%	31%	47%	47%	46%	37%
I keep getting outbid	19%	13%	17%	23%	21%	16%
I am waiting until the market becomes more favorable for buyers	49%	38%	50%	56%	51%	41%
Other	10%	15%	13%	5%	10%	13%

 

Most prospective buyers are shopping for their primary residence

The largest share of prospective buyers (75%) say they intend to use their new home as their primary residence. Smaller shares say they intend to resell or “flip” the home (11%), rent out the home (9%), or use it as a vacation home or other secondary property (4%).

Desire for a more affordable home drives half of prospective buyers

About half (53%) of prospective buyers cite wanting a more affordable home as a reason for their intent to buy. Moving for a new job (23%) trails in a distant second place. Being closer to parents (18%) and kids/grandchildren (14%) were the least common reasons.

	Total	First-Time	Repeat
I want a more affordable home	53%	54%	53%
To move for a new job	23%	21%	25%
To be closer to my parents	18%	13%	21%
To be closer to my kids or grandkids	14%	11%	16%
Another reason	26%	29%	25%

 

Most have browsed online

Almost two thirds (64%) say they had viewed for-sale homes on a real estate website (e.g. Zillow, Redfin, Trulia, Realtor.com, etc). Prospective buyers were less likely to report completing other activities, like attending an open house or private home tour (35%), and making an offer on a home (30%). Among prospective buyers that intend to finance with a mortgage, about a quarter report getting pre-qualified (28%) or pre-approved (23%).

About a third say they intend to buy for the first time

Just over a third of prospective buyers (35%) say they intend to buy a home for the first time. About two in five (39%) say they had purchased one home previously, and the remaining quarter (25%) say they had purchased multiple homes previously.

Repeat prospective buyers are more likely to report having viewed homes on a real estate website (69% versus 59% of first-timers), contacted an agent (57% versus 38%), attended an open house or private home tour (41% versus 29%), or gotten pre-qualified or pre-approved (41% versus 26%). [6] Repeat prospective buyers are also twice as likely as first-timers to have already made an offer on a home (39% versus 17%).

Prospective Buyers and Home Financing

Most intend to finance with a mortgage

Most prospective buyers (69%) intend to finance their home purchase with a mortgage or home loan. About a third (31%) plan to purchase in cash, without a mortgage. 

Prospective buyers who intend to finance their purchase with a mortgage are more likely to report getting pre-qualified or pre-approved. About two in five (42%) say they had completed the pre-qualify/pre-approval step – versus 12% of prospective buyers who were unsure of how they would finance and 36% overall.

About a quarter of report getting pre-approved

About a quarter of prospective buyers reported that they had gotten pre-approved (23%), and 21% reported getting pre-qualified (but not pre-approved). And a larger share (37%) said that they had saved up enough for a down payment (but had not gotten pre-qualified or pre-approved). About a fifth (20%) of prospective buyers reported completing none of pre-approval, pre-qualification, or saving up enough for a down payment.

Most don’t know what pre-approval is

Almost half of prospective buyers (46%) correctly say that a lender has verified a pre-approved buyer’s credit, income and savings. About one in five (21%) said that a pre-approved buyer has enough saved for a down payment instead. A similar share (18%) said that pre-approval and pre-qualification are the same, and 15% admitted that they do not know.

Over half of prospective mortgage buyers intend to put down less than 20%

While 2023 marked the first year that a majority of successful mortgage buyers reported putting down at least 20%, the same trend did not hold true for prospective mortgage buyers. Closer to two in five (44%) reported plans to put down at least 20% on their home.

Prospective buyers who reported saving up enough for a down payment were, unsurprisingly, more likely to plan to put down at least 20%: About half (51%) said they intend to put down at least 20%, versus 36% of those who said they had not yet saved up enough.

Just over half (56%) of prospective mortgage buyers said they planned to put down less than 20% on the home they intend to buy – with the median planning to put down 10-19% of the final purchase price. 

Percent that Buyers Put Down or Intend to Put Down	Prospective Mortgage Buyers	Successful Mortgage Buyers
Less than 3%	6%	8%
3% to 5%	12%	14%
6% to 9%	12%	8%
10% to 19%	26%	18%
20%	24%	23%
Between 21% and 99%	20%	29%

 

Money in the bank doesn’t always match expectations

While 23% of US adults say they intend to buy a home in the next year, only 9% intend to buy AND have more than $70,000 (approximately 20% of the typical home value) [7] in total across their checking, savings, retirement and investment accounts. Among prospective buyers, 39% have at least $70,000. The median total among prospective buyers is $29,000 – enough to put about 8% down.

Among prospective buyers that say they have saved up enough for a down payment, that amount is higher – typically $59,000 (enough for about 17% down), versus $15,500 (about 4%) for those who say they have not saved up enough. 

Percent that Prospective Mortgage Buyers Say They Intend to Put Down	Median sum of checking, savings, retirement and investment accounts
Less than 3%	$1,287
3% to 5%	$19,800
6% to 9%	$20,000
10% to 19%	$27,000
20%	$50,050
More than 20%	$74,000

 

Saving up a down payment delayed half of prospective buyers

Among prospective buyers that intend to finance with a mortgage, 52% reported pausing or delaying the mortgage process at least once to save up enough for a down payment. Prospective first-time buyers are even more likely to report a pause: 55% reported one compared to 52% of prospective repeat buyers.

Prospective cash buyers appear reliant on previous home sale proceeds

The median prospective cash buyer reports less money across their accounts ($25,150) than the typical prospective mortgage buyer ($30,000). Those who intend to buy in cash, though, are more likely to own their current home (76%) than their mortgage-intent counterparts (59%). Proceeds from a previous home sale, then, would likely supplement the slightly lower amount in savings.

Prospective buyers that intend to pay for their home	Median sum of checking, savings, retirement and investment accounts	Share that own their current home	Share that own their current home free and clear
With a mortgage	$30,000	59%	11%
Free and clear (cash buy)	$25,150	76%	51%

 

About a quarter of report getting pre-approved

Among prospective buyers that said they have applied for a mortgage, 37% say that a lender has rejected their mortgage application at least once. A similar share of those who had communicated with a lender say that a lender has discouraged them from applying for a mortgage (36%).

Resources Buyers Use When Shopping & Searching

Online searching is near universal

Nearly all prospective buyers (96%) reported searching for homes online.

Online resources used when searching	Prospective Buyers	Successful Buyers
Website on a laptop / desktop computer	85%	82%
Mobile website on a smartphone / tablet	87%	84%
App on a smartphone / tablet	84%	77%

 

Prospective buyers report more use of low-tech search tools

 

Offline resources used when searching	Prospective Buyers	Successful Buyers
For Sale or Open House sign	64%	59%
Home builder / sales center	57%	47%
Friend, relative, neighbor or colleague	69%	58%
Print ad	49%	36%
Direct mail (e.g. newsletter, flyer, postcard)	51%	37%

 

Two thirds already hired an agent

Two in three prospective buyers reported having already hired an agent. Almost half said they hired a real estate agent to help shop for a home (45%) and another quarter (23%) said they hired an agent to finalize the purchase, but intended to shop for a home on their own. About one in ten (10%) say they had not hired an agent, and did not intend to hire one. The remaining 21% said they had not yet hired an agent, but intended to hire one in the future.

Repeat prospective buyers were more likely to say they had already hired an agent (79%) than first-timers (48%).

The Ideal Home Shopping Experience

Instant access to home listings

When asked if home shoppers should be able to see and access home listings as soon as they come on the market, 91% of prospective buyers agree at least somewhat and 64% agree strongly.

See all the options

Almost all prospective buyers (91%) agree at least somewhat that they should be able to see and access all available for-sale home listings regardless of who lists them (MLS, for sale by owner, etc).

And they want it all for free

A supermajority of prospective buyers (90%) agree at least somewhat that seeing and accessing all for-sale home listings should be free for home shoppers. 

Prospective buyers largely agree with desire for tech tools

A majority of prospective buyers agreed at least somewhat with most statements about 3D/virtual tours and floor plans. However, only half (49%) agreed that they prefer 3D tours over in-person viewings (versus 31% who disagreed and 20% who neither agreed nor disagreed). 

Prospective buyers were less likely to agree with the statement “The only way to really understand the layout of a home is to see it in person” than successful buyers (76% versus 81%). On most other statements, though, they were generally more or similarly likely to agree.

Share that agreed somewhat/completely with each statement	Prospective Buyers	Successful Buyers
3D tours would help me get a better feel for the space than static photos	74%	72%
I wish more listings had 3D tours available	70%	67%
I prefer 3D tours over in-person viewings	49%	40%
I prefer to schedule in-person tours online	71%	66%
It would be easier for me to unlock properties with my phone and tour them in-person on my own time	72%	68%
I wasted time during my home search viewing properties that I would have skipped if I had understood their floorplan before my visit	57%	52%
I’m more likely to view a home if the listing includes a floorplan that I like	79%	82%
The only way to really understand the layout of a home is to see it in person	76%	81%
A dynamic floorplan that shows what part of the home each photo depicts would help me determine if the home is right for me	75%	76%

 

Floor plan, high resolution photos top list of most important listing features

About a third of prospective buyers say that a floor plan (33%) is the most important component of a home listing. High resolution photos follow, at 27%. About one in five say that 3D/Virtual tours (20%) are most important. Only one in six say the written listing description (16%) is most important, and 4% said something else topped their list.

Most important listing feature	Total	First-Time	Repeat
Floor plan	33%	37%	30%
High resolution photos	27%	22%	30%
3D/Virtual tour	20%	18%	20%
Written listing description	16%	15%	17%
Other	4%	8%	2%

 

First-timers were more likely to say that the floor plan was most important (37%, versus 30% among prospective repeat buyers). Repeat buyers, conversely, were more likely to put high res photos at the top of their list (30%, versus 22% for first-timers.

 

 

[1]  Zillow Group Population Science defines Gen Z as those born between 1995 and 2003, Millennials between 1980 and 1994, Gen X between 1965 and 1979, Baby Boomers between 1945 and 1964, and Silent Generation in 1944 and earlier.
[2] Median household incomes are from U.S. Census Bureau, 2022 Current Population Survey Annual Social and Economic Supplement.
[3] These estimates come from CHTR 2023 and the 2019 American Community Survey.
[4] The estimated share of all households with pets comes from American Housing Survey (AHS) 2021. These numbers are likely systematically low because of rising pet ownership following the COVID-19 pandemic. AHS also excludes service animals and livestock from their survey definition, whereas CHTR does not specify exclusions for any animals/pets.
Tenured homeowner household pet estimates come from CHTR 2021 (the last year CHTR included tenured homeowners) while buyer estimates are from CHTR 2023.
[5] The estimated shares of households (successful buyer, tenured homeowner, and all households) with children comes from the 2022 Current Population Survey Annual Social and Economic Supplement.
[6] The share of prospective buyers that got pre-qualified or pre-qualified (either-or, grouped) is from a different sample than whether a prospective buyer got at least one of pre-qualified or pre-approved. Numbers differ slightly between the different surveys.
[7] Typical home values are based on mid-tier Zillow Home Value Index (ZHVI) from Jul 31, 2023 of $348,126.18