Many first-time homebuyers still plan to purchase homes despite affordability challenges, with buyers increasingly willing to compromise on location, size, and financing strategies to enter the market.
First-time buyers may be growing more flexible and financially prepared, even as affordability challenges continue to shape the U.S. housing market.
A new survey from TD Bank found many first-time homebuyers remain optimistic about purchasing a home despite elevated mortgage rates, rising home prices and ongoing affordability concerns. The survey suggests younger buyers are increasingly willing to adjust expectations, explore alternative paths to ownership and make financial trade-offs to enter the market.
TD’s research found 74% of prospective first-time buyers in 2025 felt optimistic about the housing market, while nearly half said they were already saving for a down payment. Many respondents also reported taking a more proactive approach to preparing financially for homeownership.
For Realtors®, the findings may reflect a continued shift in buyer behavior rather than a pullback in demand. Buyers who once focused primarily on traditional single-family homes may now be more open to condos, townhomes, smaller properties or homes farther from urban centers if it improves affordability.
The survey also underscores the importance of early financial conversations. Buyers increasingly want help understanding monthly costs, financing options, down payment programs and long-term affordability before beginning a home search.
At the same time, affordability remains a major hurdle. Many buyers continue to feel overwhelmed by the process and concerned about costs tied to mortgage payments, insurance, taxes and competition for homes.
For agents, this may create opportunities to position themselves less as door-openers and more as problem-solvers, helping buyers navigate a changing market.
Other key takeaways from the survey include:
- Buyers are more open to co-buying with friends or family.
- Many are willing to compromise on size, features, or location.
- Some are delaying travel or other spending to save for a home.
- Insurance and property taxes remain major concerns.
- Buyers are doing extensive online research before contacting agents.
- Many still feel confused about mortgages and closing costs.
- Buyers want more educational help from lenders and Realtors.
- Homeownership is still strongly tied to stability and wealth building.
- Some buyers are expanding searches farther from city centers.
Source: TD Bank
