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Survey: Over Half of Americans Feel Now is the Right Time to Buy Property
What’s motivating people to purchase a home in 2025? We surveyed over 1,000 Americans who are planning to purchase property to learn more about why they are shopping and how they are going to afford it.
While first-time buyers are especially motivated by the desire for stability and personal achievement, rising costs are pushing all buyer groups to get creative. From picking up side hustles to relying on family support, today’s homebuyers are doing whatever it takes to turn aspiration into ownership before prices climb any higher.
Nearly 60% of Americans say fear of tariff-driven price increases is driving their decision to buy a home now, while 57% cite projected mortgage rates. Over half (56%) feel confident that now is the right time to buy—a reflection of both urgency and optimism in today’s housing landscape.
When it comes to different buyer groups, motivations for purchasing property are diverse. For first-time buyers, it’s deeply personal. Over half (57%) are purchasing homes to hit a life milestone. Repeat buyers are more likely to be navigating change, with 46% buying to accommodate life transitions like divorce or new children. Among rental property buyers, income diversification is key—62% say that’s their primary reason for investing. Finally, over one-third of secondary homebuyers plan to make these properties permanent residences in the future.
How Different Buyers are Affording Property
For many, family plays a crucial role— nearly 1 in 3 (32%) are leaning on relatives for financial support. Most buyer groups are going beyond reducing their expenses, with many taking up side hustles to afford property:
- First-time buyers: 78% are cutting their spending, 53% are picking up side hustles, and 34% are leveraging other investments
- Repeat buyers: 58% are relying on selling another property for funds, 31% are cutting their spending, and 28% are leveraging other investments
- Rental property buyers: 47% are relying on investments, 42% are relying on side gigs, and 27% are cutting their spending
- Secondary home buyers 61% are leveraging other investments, 50% are relying on side hustles, and 35% are spending less
Social Media’s Impact on Homeownership
Over half of buyers (55%) say social media influenced their decision to purchase. The top ways social media influences buyers include: seeing what’s available (37%), seeing design and feature inspiration that motivates them to upgrade (36%), and reinforcing ownership goals (26%). This comes as no surprise, with a growing number of home influencer, decorator, and real estate content on social media.
Hitting a Life Milestone Outweighs Building Wealth for First-Time Homebuyers
What is driving first-time homebuyers to look for property? While fear of rising prices came in as the third reason for home shopping, the top two factors are based on emotional preferences. The top reason to buy is comfort and personalization (i.e. more space or custom upgrades) and the second reason is the desire to hit a life milestone. In fourth place is the desire to build wealth.
Furthermore, almost all first-time homebuyers (95%) say owning a home holds emotional value, and 91% believe the stability it offers outweighs the flexibility of renting.
Beneath the dream of homeownership lies some anxiety. Nearly three-quarters (72%) feel nervous about the weight of owning a home. Some are even taking creative routes to make it work, such as renting out part of the home for passive income (23%) or considering co-buying with friends (30%). Another 23% are relying on government grants to close the affordability gap. Even with these affordability options, it takes the average first-time homebuyer 5 years to save.
Another factor motivating homebuyers is disdain towards renting. Nearly 4 in 5 (76%) of renters say they dislike it. The top reasons they dislike renting include:
- Frequent rent hikes (78%)
- Frustrating landlord relationships (60%)
- Inability to personalize their space (54%)
Investment Properties and Vacation Homes in 2025
Today’s homebuyers aren’t just looking for a place to live, they’re thinking strategically about financial goals and future generations.
62% of Rental Property Buyers Plan to Use a 1031 Exchange
More than 1 in 10 homebuyers (11%) are entering the market with investment in mind, aiming to purchase rental properties as part of a long-term financial strategy. Their top motivations include diversifying income, building generational wealth, and generating passive cash flow.
Nearly two-thirds (62%) plan to use a 1031 Exchange to defer capital gains taxes—an indicator of both financial savvy and a focus on long-term growth. Over a third (37%) are buying out of state, with strong interest in high-demand areas like Texas, Florida, New York, California, and Michigan.
When it comes to income models, rental property buyers are interested in several approaches. While 72% are interested in long-term rentals with 12+ month leases, 40% are interested in short-term rentals through platforms like Airbnb, and 29% are interested in mid-term rentals such as housing for travel nurses.
While over half (51%) express anxiety about becoming landlords, many have found a solution—72% plan to use a property management company to streamline operations and reduce day-to-day involvement.
38% of Vacation Buyers are Looking for Beach Properties
Nearly one in ten homebuyers (9%) are looking beyond primary residences and searching for secondary/vacation homes. Their top motivations are personal and practical: vacation use, multi-generational living, and the potential to transition into full-time residency down the line.
Almost all (95%) are buying within the U.S., but most are crossing state lines: 64% percent are purchasing in a different state than where they currently live, often targeting regions known for their natural beauty and lifestyle appeal. Florida, Texas, California, New York, and Hawaii top the list for secondary home destinations.
The top types of properties they are purchasing include:
- Beach and tropical homes (38%)
- Farm and countryside retreats (22%)
- Lakefront properties (18%)
Planning to purchase or sell a vacation home or rental property in 2025? A 1031 Exchange could be a smart way to protect your investment and defer capital gains taxes when transitioning between properties. Investment Property Exchange Services, Inc. (IPX1031) is the nation’s leading provider of secure, compliant 1031 Exchange services.
Methodology
In May 2025, we conducted a survey of 1,006 future homebuyers across the U.S. about their top motivations and preferences. Among respondents, 49% identified as male and 49% as female with an average age of 39.
For media inquiries, contact media@digitalthirdcoast.net
Fair Use
When using this data and research, please attribute by linking to this study and citing IPX1031.
Read more:
How to Buy Your “Dream” Home with a 1031 Exchange
How to Make a Personal Use Vacation or Second Home Eligible for 1031 Exchange Property
How to Buy a Future Primary Residence, Second Home or Personal Vacation Property with a 1031 Exchange
Do Vacation and Second Homes Qualify?
1031 Exchange and Defer? Or Sell and Pay Taxes?
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