Zillow Research just released their 2026 Consumer Housing Trends Report, and there's some interesting data here about who's buying homes and how they're going about it. Let me walk you through what they found.
The big picture is that recent home buyers represent a pretty small slice of the overall population, but the people buying homes tend to be in their mid-forties and have stronger finances than average Americans. According to Zillow Research, Millennials are making up the largest share of recent buyers at around a third of the market. The median household income for buyers is significantly higher than the national average, and buyers are also more likely to have college degrees. A strong majority of today's buyers are married or in partnerships, which makes sense because major life events like family formation often trigger the decision to buy.
There's been a notable shift in how buyers approach the purchasing process. Zillow found that fewer buyers are making a real estate agent their first call compared to last year, but nearly all of them are contacting an agent within their first three steps. What's changed more significantly is that buyers are now contacting lenders much earlier in the process, jumping from about a fifth to nearly a third starting there first. Also interesting is that three quarters of buyers are downloading real estate apps, and most of those folks are doing it before they take other major steps like touring homes or getting pre-approved.
The emotional side of buying a home is real. According to Zillow's data, roughly two thirds of buyers found the process at least somewhat stressful, and about a quarter experienced significant stress. First-time buyers reported higher stress levels than those buying again, and younger buyers were more stressed than older ones. Perhaps most notably, a third of all buyers actually cried during the process, with first-time buyers crying at much higher rates than repeat buyers.
When it comes to making offers, buyers typically submit just one offer, though first-time buyers were a bit more likely to shop around with multiple offers. Most buyers protect themselves with contingencies in their final offer, particularly around home inspections and mortgage approval. About three quarters of buyers included inspection contingencies, and over half wanted financing contingencies. Seller-paid rate buydowns were the least common concession that buyers received.
What I am seeing locally in the Bay Area and Fremont is that this national data rings pretty true to my experience. Our buyers here tend to be working with agents early and often, but they're also doing their homework online before they call us. The stress piece definitely shows up in my conversations, especially with first-time buyers who are navigating our competitive market. The emphasis on inspections and contingencies makes sense given how much homes cost around here, and I'm advising clients to have their financing locked in before they make an offer because that's what's working in this environment.
