Redfin Survey: 1 in 5 Homebuyers Expect to Sell Stocks to Fund Down Payment

With stock values dropping, would-be homebuyers may back off as their bank accounts shrink and their confidence in the economy is shaken, according to a Redfin survey

SEATTLE--(BUSINESS WIRE)--(NASDAQ: RDFN) — One in five (20%) prospective homebuyers expect to sell stocks to help fund their next down payment, according to a new survey from Redfin (www.redfin.com), the technology-powered real estate brokerage.

When it comes to people who own homes, roughly one in eight (13%) homeowners report selling stocks to help fund their down payment. One in 10 (10%) homeowners have sold stocks to help afford their mortgage payments. Renters are less likely to use stock investments for their housing payments: Just 6% of renters have sold stock to afford rent.

“Some prospective buyers are pulling back because they’re worried about volatility in the stock market,” said Heather Mahmood-Corley, a Redfin Premier agent in Phoenix. “In my area, this is mostly a concern for buyers in their 50s and older. Many of them are retreating from the housing market because a lot of the money they’d use to pay for housing is sitting in their stock portfolios, and they just don’t know what’s going to happen.”

Stock investments are top of mind because President Trump’s sweeping new tariff policy has sent shockwaves through the U.S. economy, sending the market on wild up-and-down swings; the stock market ended the day on April 7 down. Most homeowners hold some of their wealth in stocks, and so do many renters. Nearly seven in 10 (68.8%) U.S. homeowners had stock holdings as of 2022, as did 36.9% of renters.

Chen Zhao, Redfin’s economic research lead, said the dropping value of stocks will push down homebuying demand, most directly because it takes money out of prospective buyers’ pockets. A significant portion of buyers plan to use stocks to fund their down payment, and now they may not have enough money in their portfolio. Volatility in the stock market also pushes down homebuying demand in other ways.

“Big drops in the stock market not only cut into funds earmarked for down payments and other housing costs, they shake consumer confidence and make people feel poorer in general. And this comes at a time when people are bracing for the price they pay for all kinds of things to rise as tariffs go into effect,” Zhao said. “But there are some possible silver linings for the housing market. One, a volatile stock market can encourage people to invest their money in real estate instead of stocks because some may view a home as a safer investment. Two, stocks declining can push mortgage rates down.”

Mortgage rates fell to a six-month low on April 4, giving homebuyers a brief window of relief. Rates have since jumped, but it’s unclear which way rates will go in the next few weeks, as economic news is rapidly evolving.

Selling stock is less common than other methods of paying for housing

Selling stocks is a less prevalent way of paying for housing than other methods—but it’s more common for homeowners than for renters.

For house hunters looking to purchase a home soon, selling stock investments is the number-three way they’re putting together funds for a down payment, out of 13 possible choices. Nearly half (48%) of likely homebuyers plan to save directly from paychecks for their down payment, 29% are working a second job, and 20% plan to sell stocks. For the sake of comparison, some of the less prevalent methods of saving for a down payment are selling another home (16%) and using an inheritance (11%).

For renters, selling stocks is near the bottom of the list of methods people use to pay for housing. Of 13 possible choices, only two were less commonly cited than selling stock, which clocked in at 6%: using an inheritance (5%) and selling cryptocurrency investments (5%). The most common ways to pay rent are using regular income (45%) and working a second job (20%).

This is according to a Redfin-commissioned survey conducted by Ipsos in September 2024, fielded to 1,802 U.S. residents aged 18-65.

To view the full report, including a chart and more detailed methodology, please visit: https://www.redfin.com/news/stock-volatility-impact-housing-market

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.8 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email [e-mail]. To view Redfin's press center, click here.