Buying a home is a significant milestone, even recently as a new Harris poll for KB Home showed that 82% of Americans strive for that "American Dream." New research from RE/MAX validates this too, presenting that two-thirds of Millenials and Gen Z cite readiness for homeownership.
Despite over half of the country feeling that they're in a worse position than prior generations, homebuyers feel good about the potential.
The obstacles faced in this economy aren't unique to any single age group; first-time home buyers and experienced homeowners are both up against high house prices and stringent loan approval criteria. Even repeat buyers often lack the knowledge to navigate swiftly in a competitive real estate market.
While these challenges may seem overwhelming, sentiment measured by KB Home, RE/MAX, and data presented within the NAHREP State of Hispanic Homeownership Report and Century 21 Hispanic Homebuyers Report show evidence of consumer determination and optimism.
Find Your Motivation
Motivation and mindset go a long way. KB Home's study showed that though 85% of homebuyers are at least somewhat nervous (especially about buying a money pit), leaning into feelings of pride and extruding confidence can make it easier to navigate the unknown.
The study also showed that men are more likely than women to feel motivated (35% vs. 28%) about buying a house, and they're also less nervous than women about finding “the right home for them” (73% vs. 77%).
The National Association of Hispanic Real Estate Professionals (NAHREP) speaks more directly to the motivations of Hispanic homebuyers. "For Hispanic homebuyers, community isn't just about finding somewhere to live but finding a neighborhood to build a network of support and shared dreams," shared Oralia Herrera, Broker/Owner of CENTURY 21 TK Realty, Inc. and the 2025 NAHREP President. "[The] report shows that Latinos are driving homeownership growth with over 200,000 new Hispanic owned households added in the past year alone."
To underscore what matters most to these buyers, she adds, "They’re choosing neighborhoods where they can celebrate their culture, stay connected to their traditions, and create a strong sense of belonging. In these neighborhoods, they organize to address local issues such as education, healthcare, and housing thus creating a network of mutual support. Proximity to work is also a big consideration for the Hispanic homebuyer."
Motivated homebuyers find it easier to navigate the ups and downs of the process and find listings that check all the boxes—but they need to have the presence of mind to understand that the "right" features or community might also evolve with time.
Make it Work
Making reasonable concessions can fast pace your savings. "Homeownership starts with smart financial planning—your debt-to-income ratio isn’t just a number, it’s a snapshot of your readiness," reminds Herrera. "Living below your means isn’t about sacrifice; it’s about building stability, gaining freedom, and creating the peace of knowing your home is truly yours. The more you manage today, the more options and opportunities you’ll have tomorrow."
3 in 4 homebuyers are nervous about being able to afford a home, much less find the right home, and solo homebuyers are also more likely to fixate on finding the right partner to help them buy one, according to KB Home's report.
Most surveyed in the Harris poll were willing to go to great lengths to save for a down payment. Some spend less on non-essential items or take on a second job or side hustle to save for a larger down payment (or a cushion, just in case it's a money pit). The data also showed that men are more likely than women to be willing to live with others in order to increase savings (52% vs. 43%).
Challenge the Myths and Learn to Navigate Barriers to Access
Longstanding myths can be a deterrent during the buying process. It's important to remember that you're not overwhelmingly in a worse position than your parents and grandparents. While sale prices and property taxes have changed due to current market inflation factors, mortgage lenders are motivated to deliver competitive interest rates so homeowners can have a lower monthly payment.
"More than half (54%) believe — incorrectly — that mortgage rates are at an all-time high, and 1 in 6 aren’t sure at all whether they are at the highest. In fact, the highest rates on record were in 1981, when the 30-year fixed rate peaked at 18.6%, much higher than today," states a representative from KB Home.
Assistance programs, like Fannie Mae’s HomeReady® Mortgage used to be a great resource for Herrera's clients. Though the program is no longer offered, if you're a low-income or minority borrower, do your research:
- Learn about the process of homeownership on your own.
- Take a financial literacy course.
- Understand whether there are loans available that allow non-traditional income sources—such as income from multiple generations within a household, which is common among minority and immigrant communities.
Close the Knowledge Gap
Take the time to learn about the many aspects of home buying. Read a lot, use the mortgage calculators, and talk to your real estate agent, mortgage broker or lender, and attorney to gain as much knowledge as possible about the key terms and the process. There is so much information available out there!
Using an agent is also important in today's competitive market, highlights Herrera. "Not only are they experts in the local markets, but they know the ins and outs of contracts, inspections and negotiations. They are truly an advocate for their clients. We as agents often become a trusted advisor not only for the purchase of the home but for other financial decisions. As an agent we always put our clients' interests before our own, often going the extra mile to make sure they have all the resources and grants available to them at the time of purchasing a home."
The KB Home survey showed that the majority of Americans have a poor understanding overall, while only half were able to correctly identify terms like APR (Annual Percentage Rate) and PMI (Private Mortgage Insurance). Data also shows that only about 1 in 3 people know key facts about financing a home, including that a minimum down payment of 20% is not required. That can save you thousands of dollars upfront (or years of time spent saving). Also, did you know that you can qualify for a mortgage with a credit score in the 500s? (Only 28% of respondents did.) Take the following steps into consideration before you make a game plan and start house hunting:
- Consider how closing costs and real estate agent commission fees play a role in the bottom line
- Take steps to improve your credit score
- Explore your desired price range, and deeply consider what defines a dream home for you. Also consider the type of property you aspire to buy.
- Organize all of your tax returns so you can showcase your ability to make monthly mortgage payments (this is important for any mortgage loan)
- Determine the loan types for your needs (and the market conditions)
- Learn the definition of these key terms: Title Insurance, Earnest Money, Income Ratio, Jumbo Loan, Conventional Loan, Government-Backed Loan, Investment Property
- Consider the importance of access to public transportation or parking
