1 in 5 Homebuyers Willing to Sacrifice Safety for Bigger Savings: Poll
Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content.
Some house hunters are sacrificing safety for savings when it comes to their home pursuits, though new survey results show that living in an area with low levels of crime remains a top priority for most aspiring homeowners.
"What stands out in this survey," Chen Zhao, Redfin's head of economic research, told Newsweek via email on Friday, "is that affordability challenges are now strong enough to shift the threshold for what people are willing to give up."
Why It Matters
Housing affordability remains an ongoing concern for myriad Americans who are navigating economic concerns and a housing market that has been topsy-turvy since the pandemic.
The median U.S. home-sale price has increased more than 40 percent since before the pandemic, while mortgage rates are roughly double pre-pandemic and early-pandemic days, according to real estate and brokerage firm Redfin. More inventory has not exactly resulted in more home purchases, as homeowners with locked-in, pre-pandemic rates have been wary of selling off as the 30-year fixed-rate mortgage—the most popular home loan in the country—has been hovering between the 6-percent and the 7-percent marks since 2022, and was at 6.72 percent as of July 31, according to Freddie Mac.
What To Know
A Redfin-commissioned survey conducted by Ipsos in May and fielded to more than 4,000 U.S. homeowners and renters focused on 1,224 respondents who were planning to buy a home within the next 12 months. The survey has a credibility interval of 3.4 percentage points.
The survey asked respondents the following question: "When thinking about the next home you live in, which of the following do you consider a must-have feature versus a feature you'd be willing to trade off to afford a home?"
A street of partially finished new homes in a new suburban housing development in Spokane, Washington, USA.
A street of partially finished new homes in a new suburban housing development in Spokane, Washington, USA.
Getty Images
Respondents were asked separately about 18 features, and for each one, they could choose "must have" or "willing to compromise to afford a home."
The survey about negotiables and non-negotiables found that approximately one-in-five (22 percent) house hunters would compromise safety and personal security for a good deal. However, personal safety remained a "must-have" for such aspiring buyers.
Coming in at second-most important was living in an area with a low crime rate, with about 74 percent of respondents calling it a major priority.
"It's not especially surprising," Chen Zhao, Redfin's head of economic research, told Newsweek via email on Friday. "People have always weighed different priorities when buying a home, and the right balance depends on each household's circumstances.
"What stands out in this survey is that affordability challenges are now strong enough to shift the threshold for what people are willing to give up. Safety is typically considered a fundamental need, but in today's market, some buyers feel they have no choice but to make concessions in that area if it means achieving homeownership."
Priorities like safety, avoiding high-crime areas and being cognizant of environmental factors "has consistently ranked among the top considerations for buyers in our surveys," she added.
"That's remained steady over time, though climate-related concerns have become more prominent," Zhao said. "Severe weather events have grown more frequent and costly in many parts of the country, and people are increasingly aware of how those risks can impact their quality of life, insurance costs, and a home's long-term value."
Rounding out the top five "must-haves" were the following:
Living in an area where homes are at a low risk of climate or natural disasters (68 percent)
Access to grocery stores and farmers' markets (67 percent)
Number of bedrooms (64 percent)
Other notable items house hunters describe as non-negotiables include indoor space and square footage (63 percent); yard and outdoor space (62 percent); home type, such as a single-family dwelling (60 percent); number of bathrooms (58 percent); and space to work remotely from home (57 percent).
Asked if some homeowners may be compromising more overall nowadays due to the state of the housing market and generally higher costs in many markets, Zhao said they are due to borrowing costs having made it much harder for buyers to find a property that checks all their boxes.
"In many cases, they're expanding their search geographically, reducing their wish list or accepting trade-offs they wouldn't have considered five or ten years ago," she said. "Unfortunately, for some buyers, that means purchasing in areas that may carry higher safety risks, whether due to crime, natural hazards or other factors. It's a reflection of how constrained the market is right now."
What People Are Saying
Katie Shook, a Redfin Premier agent in Phoenix, in a statement: "Prices are starting to come down, but buyers–especially first-timers–are still battling with affordability. Buyers want a home that fits their practical needs: They're looking for a bedroom for every kid, space to work from home or an easy commute, things like that. Some more luxurious features, like a fully finished backyard with a pool or a recently renovated kitchen, aren't as valuable to buyers as they used to be. People might want those things, but they aren't willing to–or can't–pay more for them."
What Happens Next
As home prices level off or decline in major metros and inventories are projected to increase, industry analysts expect affordability to improve modestly in more markets by the end of 2025.
Redfin's data has suggested that national home prices could fall up to 1 percent by year-end, giving some would-be buyers an opportunity to reenter the market. However, real estate markets remain highly regional.
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That makes it easier to get wrong—and could lead to disputes or lawsuits from workers if they feel they didn't get a fair deal." The group added that private equity "often reports returns in ways that make them look better than they are." "Without clear, standardized yardsticks, it's hard for plan managers to tell if the investment is actually worth it." What Employees Need to Know Simon Tang, Accelex "For employees, there are several concerns of private equity investing including the higher fees, inherent complexity and opacity, and also the unique return, risk and liquidity profile of this asset class," said Tang. "Resolving these concerns will require substantial education and data-driven knowledge transfer." "Another key risk that needs to be examined and understood is asset allocation and portfolio construction," he told Newsweek. 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In other words, participants must first understand whether a fund has sufficient liquidity and manageable fees, and whether it is "overseen by a fiduciary with sufficient expertise." "Even if such an investment is available in a plan's investment lineup, plan participants should make sure an investment is prudent given the participant's specific situation," he added. Private Equity Stakeholder Project (PESP) "Higher costs eat into savings," the watchdog told Newsweek. "Private equity funds usually charge much higher fees than index funds—sometimes multiple layers of them—and those fees add up over time, leaving you with less money at retirement." It added that money in private equity investments is typically "locked up longer." "You can sell a stock or bond fund any day. With private equity, you may have to wait years to get your money out, and even then, you might get less than you expect." 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