The next generation of homebuyers is 'overloaded' and confused

"Although more than two-thirds of participants said they felt confident making financial decisions, fewer than half could correctly answer basic questions about interest rates, credit scores and retirement savings. Nearly half of surveyed homebuyers believe they need 20% down to buy a home, while only 8% correctly identified the minimum down payment for a conventional loan. Mortgage insurance is also misunderstood as only 35% recognize its main benefit (enabling smaller down payments), and just 57% know it can be removed during the loan term."

"Of the respondents, 52% said they feel overloaded by financial information, and 51% reported having delayed major financial decisions due to their complexity. Roughly 40% of Gen Z trusts influencers for homebuying advice, and 71% use TikTok for research. Overall, 40% turn to social media for homebuyer education. More than half (61%) of respondents said they would use AI tools like ChatGPT for homebuying information, which is up from 35% in January 2025."

"Demographics influence financial literacy and comfort. Women reported significantly lower confidence than men (38% vs. 47%), yet performed equally well on literacy assessments. The survey also recognized a generational knowledge gap, with quiz scores rising with age as Gen Z respondents averaged 67%, younger millennials 71% and older millennials 74%. Buyer archetypes, representing 88% of all respondents, emerged as a result of the study. Stay secure buyers, defined as those who view money as primarily for security and stability, represented 53% of the cohort."

More than two-thirds of participants felt confident making financial decisions, yet fewer than half answered basic questions about interest rates, credit scores and retirement savings correctly. Nearly half of homebuyers believe a 20% down payment is required, while only 8% identified the conventional loan minimum. Only 35% recognize mortgage insurance enables smaller down payments, and 57% know it can be removed during the loan term. Over half of respondents feel overloaded by financial information and delay major decisions. Many younger buyers rely on social media and influencers for homebuying research, and interest in AI tools for homebuying has risen sharply. Buyer archetypes skew toward security-focused and experience-focused segments.

Read at www.housingwire.com