What’s Motivating Homebuyers in 2024

Discover the top reasons behind today’s home purchases, and how they affect the market.

The decision to buy a home is driven by many factors, and for potential homebuyers, these motivations vary based on personal circumstances, lifestyle changes, and financial goals. According to recent data, several key trends highlight what is driving people toward homeownership in today’s market. The statistics offer insight into the reasons behind purchasing decisions, helping both real estate professionals and buyers better understand the current market environment.

Seeking a Larger or Nicer Home (32%)

A significant 32% of active homebuyers are motivated by the desire to upgrade their living situation by purchasing a larger or nicer home. This trend speaks to a few larger market dynamics, including the natural progression many individuals experience as they seek to move up the housing ladder.

Many homebuyers, particularly those who have lived in smaller starter homes, often feel the need for more space. This can be due to life changes like a growing family, changes in lifestyle, or the pursuit of additional features, such as outdoor space, home offices, or upgraded amenities. The COVID-19 pandemic also influenced many buyers to rethink their living spaces, as remote work and stay-at-home orders highlighted the importance of having comfortable, functional homes.

Job-Related Relocation (31%)

Close behind, 31% of buyers are moving due to job-related relocation. The global economy and job market are in a constant state of flux, and job relocations have historically been one of the primary reasons people move homes. Whether it’s for a new position, a transfer, or the opportunity to be closer to an office, many buyers are prompted to purchase a home in a new location when their employment situation changes.

Additionally, shifts in the labor market due to hybrid or remote work setups have expanded the range of possible destinations for workers. Many people who previously needed to live in proximity to offices have the flexibility to live farther from urban centers, giving them the freedom to buy homes in more affordable or desirable areas, driving housing demand in suburban and rural regions.

Financial Benefits of Homeownership (29%)

One of the most well-established motivations for purchasing a home is the financial benefits that come with homeownership. 29% of buyers are driven by this factor. Homeownership provides a long-term investment, allowing individuals to build equity, benefit from tax advantages, and capitalize on potential property appreciation.

In an environment where rental prices continue to rise, owning a home can offer stability and the ability to lock in monthly payments through fixed-rate mortgages. For many, the opportunity to stop paying rent and start investing in an appreciating asset is a key motivation. Moreover, the prospect of owning a home often aligns with larger financial planning goals such as retirement savings, diversifying investments, and wealth accumulation.

Moving Closer to Family (25%)

25% of homebuyers are primarily motivated by a desire to be closer to family. This reflects the importance of familial support, particularly as we continue to emerge from the pandemic, which reinforced the value of strong family connections and community ties.

Whether it’s older generations moving to be near their children and grandchildren or younger families relocating to benefit from extended family support, this trend highlights the emotional and practical aspects of homeownership. Many buyers, especially those raising children or transitioning into retirement, prioritize living closer to family as a critical factor in choosing where to live.

The pandemic also accelerated trends such as multi-generational living, where families consolidate households to provide care and support for aging parents or other relatives. This growing trend is driving demand for homes with additional space, including in-law suites or multi-family setups.

Getting Married (17%)

For 17% of buyers, marriage is a key motivating factor for purchasing a home. Marriage often signals the beginning of new life stages, including settling down and building a home together. Traditionally, couples view homeownership as a significant step toward creating stability and wealth as they start their journey together.

Purchasing a home after marriage is often linked to starting a family, as couples seek to establish roots and find a long-term living arrangement that fits their future needs. With mortgage rates fluctuating and economic uncertainty, some couples see now as a good time to lock in favorable terms, especially as they plan for future milestones.

Planning to Retire (17%)

Similarly, 17% of buyers are motivated by retirement planning. As individuals near retirement age, they often evaluate their current housing situation to determine if it aligns with their lifestyle goals in retirement. Downsizing, relocating to a different climate, or moving to be near family are common motivations for retirees entering the housing market.

For some, moving into a smaller home allows them to reduce housing costs, making retirement savings last longer. Others may choose to relocate to areas known for their lower cost of living or appealing lifestyle amenities, such as access to healthcare, recreational activities, and vibrant communities.

The trend of retirement migration has driven demand in many Sunbelt states, where retirees seek affordable housing and warmer weather. Additionally, some retirees look for homes with features that support aging in place, such as single-level living or properties located within communities offering services geared toward older adults.

Understanding the Broader Market Context

While these motivations are not new, the pandemic has accelerated many of these trends, reshaping the housing market in unique ways. Buyers today are more attuned to how their homes fit into their overall quality of life, as remote work, changing economic conditions, and lifestyle priorities shift.

The demand for larger homes, for example, is consistent with the long-term trend of families seeking more space, but it has been amplified by the rise in remote work. The increased value placed on home offices, private outdoor areas, and recreational space continues to push demand higher, particularly in suburban and exurban areas.

Similarly, job-related relocation remains a powerful force in the housing market, but the dynamics have changed with the advent of more flexible work arrangements. Now, some buyers are relocating for lifestyle reasons rather than job requirements, and many are choosing destinations farther away from traditional job centers.

The Role of Real Estate Agents and Mortgage Brokers

Understanding what motivates buyers is crucial for real estate agents and mortgage brokers alike. Tailoring services to address these needs—whether it’s helping a buyer find a larger home or navigating the complexities of a job-related relocation—can make a significant difference in client satisfaction.

For mortgage brokers, understanding buyers’ motivations allows them to offer the right financial products. For instance, buyers looking for larger homes may need guidance on jumbo loans or higher mortgage limits, while those relocating for a job might require assistance with fast-tracking their mortgage approval process.

About Us

At Innovative Mortgage Brokers, we are committed to providing personalized mortgage solutions that help our clients achieve their homeownership goals. With over 15 years of experience, we specialize in finding the right loan for each client’s unique situation, offering a wide range of mortgage products across Pennsylvania and Florida. Whether you’re a first-time homebuyer, looking to refinance, or need assistance with a more specialized loan like Non-QM, DSCR or FHA, we’re here to guide you through the process from start to finish.

We pride ourselves on transparency and customer service, offering access to real-time mortgage rates directly through our website to help clients stay informed. At Innovative Mortgage Brokers, we work hard to simplify the mortgage process, delivering competitive rates and advice to make home financing easier and more accessible. Let us show you why so many homebuyers and homeowners trust us with their mortgage needs.

Conclusion: Understanding Buyer Motivations in Today’s Market

As the housing market continues to evolve, it’s clear that the motivations behind homebuying are influenced by personal life events, financial considerations, and broader economic factors. Whether it’s the desire for more space, relocating for a job, or capitalizing on the financial benefits of homeownership, each buyer’s journey is unique.

Understanding why people buy homes, whether for more space, family connections, or long-term financial security—can help both buyers and sellers navigate today’s competitive market. At the end of the day, the right timing and guidance can make all the difference in achieving homeownership goals.