At a Glance

According to SDVA Homes most recent Veteran Homebuyer Report, a quarterly national survey of Veterans, service members, and civilians who intend to buy a home in the next three years, nearly 40% of would-be buyers plan to do so in the next six months, up ten percentage points from the previous quarter. With mortgage rates and inflation finally falling, more veteran and military buyers are accelerating their home-buying timelines into 2024.

According to SDVA Homes most recent Veteran Homebuyer Report, a quarterly national survey of Veterans, service members, and civilians who intend to buy a home in the next three years, 37% of would-be buyers plan to do so in the next six months, up ten percentage points from the previous quarter.

Overall, 70% of prospective Veteran and military buyers intend to purchase this year, up from 67% last quarter. Veterans and military members are also increasingly convinced that mortgage interest rates have reached an all-time high.

Half of all Veterans believe rates will be the same or lower a year from now, with 21% expecting them to be much or somewhat lower, up from 12% in the third quarter. And an increasing proportion believe that inflation will be lower a year from now.

“Scott Rojo, founder at SDVA Homes, said that veteran and military buyers are entering 2024 with cautious optimism, thanks in large part to lower mortgage rates and signals that inflation is moving closer to control. “There are definitely obstacles when it comes to growing property prices and general housing affordability, but the picture for this year is bright, as reflected in Veterans’ views and confidence about their overall financial health and future.”

Three significant new conclusions from this recent SDVA Homes survey:

Veterans’ Rising Financial Optimism

More Veterans are optimistic about their personal financial prospects, with 61% expecting to be better off financially in the coming year, up from 56% in the third quarter.

A majority (52%) feel they’re better off financially than they were a year ago, and more Veterans are parting with their money to show it.

• Veterans and military members are spending more money currently compared to a year ago, up from 37% in Q3.
• 30% of potential purchasers reported making large-scale purchases, up from 24% in Q3.
• Veterans reported more financial confidence (51% vs. 48% last quarter).

In what has been a long-standing trend, veterans continue to be far more positive than civilians about their financial prospects and chances of purchasing a home.

Veterans Feel Better Financially Than Civilians

This veteran-civilian financial optimism disparity, which we discovered in the second quarter, will stay high throughout 2024.

Compared to civilians, veterans are more at ease with finances, more hopeful about their financial future, and less anxious about it.

Civilians are significantly more negative about interest rates: 53% believe they will rise in a year, compared to 50% of Veterans.

Right now, Veterans appear to have a better chance of achieving the dream of homeownership than civilians. In Q4, more than half (54%) of Veterans reported feeling like they could afford to buy a home, compared to 47% of civilians.

Looking ahead, 70% of citizens indicated they want to purchase within the next year, down from 75% in Q3.

“The financial optimism gap between veterans and civilians will undoubtedly persist into 2024,” Birk stated. “Higher house prices and interest rates continue to be hurdles to homebuying for all potential buyers, but overcoming them and closing on a home loan feels more feasible for veterans and those who serve. Some of their confidence stems from their access to the VA loan benefit, which makes home purchase simpler.

More Pessimism About U.S. Economy

Veteran and military attitudes for the future of the national economy remained stable until 2023.

Most Veterans (61%) expect the economy to be considerably or somewhat better off in the coming year, albeit this was down slightly (62%) from Q3.

And while a growing minority of Veterans think inflation will be much or somewhat lower over the next year (18% in Q4 compared to 14% in Q4), most Veterans (55%) still expect inflation to rise over the next 12 months.

At the same time, 60% of Veterans expect average home prices in their area to be higher over the next year.

Despite some pessimism, most Veterans are positive about house ownership and their own financial futures. They also recognize that benefits, such as lower housing prices and higher inventory, are likely to be gradual.

Methodology

Sparketing, a data and research organisation, performed an online poll of around 900 Veterans, military members, and civilians from late November to mid-December 2023.

We polled active-duty and reserve military personnel, as well as veterans.

For the purposes of this poll, active duty troops are full-time Armed Forces members. The Reserve component consists of trained National Guardsmen and Reservists. Veterans are military personnel who have been discharged or retired from the service and are no longer in uniform.