Navigating Home Ownership: Balancing Spending and Saving for Financial Success

*KeyBank's Financial Mobility Survey sheds light on spending and saving habits to help achieve homeownership this Fair Housing Month*

*NORTHAMPTON, MA / ACCESSWIRE / April 22, 2024 /* Owning a home marks a significant milestone in one's life, yet it also introduces a myriad of financial responsibilities that demand careful foresight and planning. With homeownership, there are new and unforeseen expenses that need to be proactively planned for. As outside and unexpected factors come into play, the importance of having a well-thought-out financial plan becomes paramount.

A recent survey from KeyBank found the newest generation of homebuyers is living through a tough housing market, making home ownership feel unattainable to many. According to new research from KeyBank's 2024 Financial Mobility Survey^1, 29% of Americans do not own a home and do not plan on purchasing one in the next 12 months. Of those Americans, only 1 in 10 indicate that home ownership is very attainable.

While mortgage rates have begun to cool off slightly, the lack of available supply means home prices have remained high. Because of this, some younger Americans are choosing to make financial changes in order to achieve the dream putting money aside, creating budgets, and reducing spending to buy a home and to feel more confident in their financial approach.

As younger generations approach life milestones, societal pressures may be influencing them to prioritize homeownership. The average age of Americans in the market for a home is 36, and to help with the dream of owning a home, they are spending less and saving more (45%). Among recent and prospective homebuyers, the top step taken to save money for a home is to put away money in a dedicated savings account (43%). Of those who are in the market for a home, 48% reduced unnecessary spending.

Following the closure of a new home, homeowners may be faced with big ticket items to fix around their home immediately. In fact, 51% of new homeowners expect to use more of their savings next year as compared to those in the market for a home (45%) or who don't own a house (35%). However, new homeowners are bringing financial confidence to the closing table. Almost three-fourths (71%) of new homeowners within the last 12 months believe they could come up with $2,000 within a month if needed and are very/somewhat confident in the ability to grow their finances (86%).

Whether you're settling into your new home or saving for your dream house, maintaining a healthy balance between saving and spending is crucial. The homebuying process can seem intimidating, especially in a challenging economic environment, so it is important to consult with your financial professional or mortgage loan officer to determine the pathways to homeownership that make the most sense for your goals and your budget. By staying proactive and mindful of your financial habits, you can navigate homeownership with confidence and secure your financial future.

NMLS# 399797. KeyBank Member FDIC. NOTICE: This is not a commitment to lend or extend credit. Conditions and restrictions may apply. All home lending products, including mortgage, home equity loans and home equity lines of credit, are subject to credit and collateral approval. Not all home lending products are available in all states. Hazard insurance and, if applicable, flood insurance are required on collateral property. Actual rates, fees, and terms are based on those offered as of the date of application and are subject to change without notice.

CFMA #240416-2554178

^1The KeyBank 2024 Financial Mobility Survey was conducted online by Schmidt Market Research. 1,000 Americans, ages 18-70, with sole or shared responsibility for household financial decisions, who own a checking or savings account, completed the survey in September 2023. The survey asked respondents about their financial attitudes, understanding, awareness and actions over the prior year.

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*SOURCE: *KeyBank
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