Yahoo Finance More Than 4 in 10 Americans Plan To Buy a Home in 2024 — Can You Afford the Average Budget?
Average home prices in the United States have been hovering near all-time highs for a couple of years as the combination of low inventory and heavy demand have priced many buyers out of the market altogether. Although there have been signs that price growth has eased in some markets, don’t bet on prices coming down much in 2024.
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In an October report, the National Association of Realtors predicted that the national median existing-home price will increase 0.7% to $389,500 in 2024. The market for new homes might bring better news for house hunters, as the National Association of Home Builders estimates that the combination of more single-family starts and rising mortgage rates will push many builders to reduce home prices to boost sales.
Other experts have a different take on home prices in 2024. Nick Ron, founder and CEO of House Buyers of America, expects average home prices in the U.S. to rise around 3 to 4% next year.
No matter where prices go, you can expect a lot of activity in next year’s housing market, according to a recent survey of 1,003 Americans from Architectural Digest. The survey, released in October, found that 41% of Americans plan to buy a home in 2024.
The average homebuyer’s budget for 2024 is $313,141 — considerably less than the average price of homes sold during the 2023 third quarter, which the Federal Reserve pegged at $513,400. However, one in three survey respondents said they’re willing to spend upwards of $400,000. Here’s how the average budget breaks down by generation:
Gen Z: $237,564
Millennials: $316,324
Gen X: $336,716
Baby boomers: $325,000
Nearly half of homebuyers surveyed by Architectural Digest said they would spend about $50,000 over budget to buy their dream home in 2024. Almost one in three would consider buying an RV or camper instead of a traditional house.
Millennials are poised to make the biggest home ownership move in 2024, with nearly half (49%) saying they plan to buy a home. Here’s how the other age groups break down:
Gen Z: 37%
Gen X: 33%
Boomers: 27%
About one in three Americans polled by Architectural Digest are confident they can afford to buy their dream home in 2024. In terms of the types of homes they’re looking for, the biggest percentage (61%) said they want a single-story home. That was followed by two-story homes (42%), ranch-style homes (30%), townhouses (19%), apartments (13%), duplexes (12%) and tiny homes (11%).
Where do all these potential homebuyers want to live? Here are the 10 most popular metro areas for home purchases in 2024, according to the Architectural Digest survey:
Los Angeles, California
New York, New York
Charlotte, North Carolina
Miami, Florida
Atlanta, Georgia
Las Vegas, Nevada
Houston, Texas
Virginia Beach, Virginia
Seattle, Washington
Chicago, Illinois
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This article originally appeared on GOBankingRates.com: More Than 4 in 10 Americans Plan To Buy a Home in 2024 — Can You Afford the Average Budget?
