It comes as no surprise that buying a home is stressful for many Americans. Not only are you making one of the most important financial decisions of your life, but you are creating a new life in a completely new environment.
While the home buying process has always been stressful, a recent Zillow survey showed exactly how stressful it has become. The study showed that 50% of home buyers in the modern era cry at least once during the home buying process.
Why Buying a Home is So Stressful
The home buying process has always been stressful, but it has been an increasingly common concern for Americans in recent years. Here’s why:
Finding the right home isn’t easy
According to the Zillow survey, home buyers listed finding the right home as a top reason for stress. Among survey respondents:
- 62% were stressed about being able to find a home within their budget
- 61% were stressed about not having enough homes to choose from
- 58% were stressed about finding a home in their preferred neighborhood
It’s a strong seller’s market
Another reason why the home buying process is so stressful or many is because it is a strong seller’s market, and has been for several years. Over 60% of home sellers surveyed in the study reported receiving at least two offers on their home, and nearly half of all homes sold in the U.S. in 2022 went for over their listing price.
Related: Here’s how much space $400,000 buys in the biggest U.S. cities
Cash is king
The Zillow survey also shone a light on the difficulties home buyers have when financing versus paying all cash for their home (something many buyers cannot do). The survey found that 30% of home buyers lost to an all-cash bidder at least once in the process.
Some buyers face additional barriers
When asked if they had cried during the home buying process, survey participants responded differently according to two demographic categories: race and age. The survey found:
- Latinx buyers were far more likely to report crying at least once (68%) compared to Black (51%) and white (48%) buyers.
- 26% of buyers of color reported “losing out” on a home because of financing falling through, compared to 18% of white buyers.
- Black mortgage applicants were denied 84% more often than white borrowers.
- Over 65% of Gen Z buyers and 61% of millennial buyers cried at least once when going through purchasing their home (as compared to 50% of Gen X and Boomer generations)
Crying is a normal response to stress, but is more often associated with emotional stress, such as getting married or adjusting to a family change. However, Zillow home trends expert Amanda Pendleton explains:
Buying a home is not like buying any other asset; it’s deeply personal and it’s emotional. When you make an offer on a home, you have likely envisioned your life there. If you lose out on that home to a stronger offer, it can feel like losing a future you have already started planning. These survey results find, even when they are ultimately successful, a large share of buyers in today’s competitive market experience heartache and stress.
Tips for Managing Home-Buying Stress
If you are one of the many Americans who finds the home buying process overwhelming, there are simple steps you can take to relieve some of the pressure:
- Finance before you shop – It’s important to understand exactly what you can afford before beginning the home buying process. Begin with a mortgage calculator to help you better understand the costs of buying your home, so you can plan accordingly.
- Work with a reputable agent – Finding a reputable real estate agent can make the home buying process much easier for you. They can help you find the best homes for your budget without sacrificing your wants and needs, and help you negotiate when you’re close to closing.
- Take it slow – Like with any stressful life event, it’s important to take the home buying process slow. You don’t want to burn yourself out, as this can make the stress exacerbated over time. Remember to take things one step at a time and find time to de-stress when things don’t go your way.
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