A Chase survey revealed nearly 4 in 10 potential first-time buyers lost income during the pandemic, setting back their homeownership goals.

Last year’s volatile housing market was discouraging for otherwise eager potential first-time homebuyers, according to a new survey.

First-time buyers have been budgeting, working on their credit scores and saving toward a down payment even as many have become less confident in their ability to secure their first house, according to the new report from JPMorgan Chase & Co.

Notably, 37 percent of hopeful first-time buyers said they lost income during the pandemic, affecting the timing of their planned purchase.

“The events of the last year upended various aspects of our lives, including prospective homebuyers and their plans to purchase,” Sean Grzebin, head of consumer originations for Chase Home Lending, said in a news release. 

The banking giant’s findings were based on a survey of 1,100 people in mid-March who were actively preparing to buy their first home.

Despite some setbacks with regard to income, 60 percent of these prospective first-timers said they were likely to purchase sometime in the next year.

Survey respondents consistently pointed to larger living spaces and space for family as part of their reasoning for wanting to become homeowners. But in addition to these practical considerations, 69 percent said they saw homeownership as an important part of building wealth. This sentiment was even more prevalent in Black and Latino households.

Black and Latino households were also more likely than other groups to say the pandemic caused them to reconsider their financing options. These same groups were also likelier to say they expected to enjoy the homebuying process.

“Despite possible income changes and prolonged timelines, buying a home as a means to build wealth and stability still resonates with first-time homebuyers,” Grzebin said in the statement. “The research shows that they are also open to making lifestyle changes in order to reach their homeownership goals.”

This statement about lifestyle changes applies to the vast majority of potential first-time buyers surveyed. In addition to budgeting and improving their credit scores, more than 3 in 4 of these people were actively saving for a down payment, and about half said they were planning to research down-payment assistance programs. 

In the news release, Chase said it commissioned the study to better understand the needs of first-time buyers affected by the pandemic. They took a particular interest in buyer confidence, financial readiness and practical steps buyers were taking to propel themselves into homeownership.

Email Daniel Houston

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×