How Job Security Concerns Are Impacting Homebuying Decisions in 2025

A significant 42% of American workers are delaying or canceling major purchases, including homes, due to feelings of job insecurity, according to an August 2025 survey. This trend is most pronounced among lower-income earners and renters, creating a cautious housing market where confident buyers have increased negotiating power. The data reveals a direct link between economic uncertainty and major financial decisions, with implications for both buyers and sellers.

How Are Workers' Feelings About Job Security Affecting the Housing Market?

The primary impact is a hesitation to commit to large investments. The Redfin-commissioned survey, conducted by Ipsos, found that nearly half (49%) of working renters are postponing major purchases, a rate nearly double that of working homeowners (27%). This suggests that those not yet invested in the housing market are particularly sensitive to economic instability. Conversely, 29% of workers feel secure enough to accelerate their purchase timelines. This split creates a market dynamic where motivated buyers face less competition, potentially giving them leverage in negotiations.

Which Groups Are Most Likely to Delay Buying a Home?

Economic vulnerability is a key predictor. The survey data, representative of the U.S. workforce, shows a clear income-based disparity:

This indicates that lower-income households are exercising greater financial caution. Age is also a factor; younger workers (aged 18-34) are less likely to have a robust financial safety net, which compounds concerns about job security.

Why Are Workers Concerned About Job Security in the Current Economy?

Despite a relatively low national unemployment rate of 4.2% in July 2025, perceptions of the labor market are mixed. When asked for the primary reasons behind their concern, workers cited several factors:

• Company Performance (32%): Worries about their employer's financial health.
• Tariffs (17%): Concerns about broader economic policies affecting business.
• Impact of AI (16%): Apprehension about technological displacement.

Furthermore, 37% of all workers reported being more concerned about their job security compared to six months ago, highlighting a climate of economic uncertainty that influences consumer behavior.

How Does Emergency Savings Factor Into Homebuying Readiness?

An emergency fund—a dedicated savings account to cover unexpected expenses like job loss—is a critical component of financial readiness for homeownership. The survey found that 36% of American workers have no emergency fund to cover their housing payments. The adequacy of existing funds also varies significantly:

• 32% have 0-3 months of housing payments saved.
• 23% have 4-6 months of savings (aligning with typical financial expert recommendations).
• 37% have more than 7 months of payments covered.

Notably, homeowners (65%) and high-income earners (68%) are far more likely to have an emergency fund than renters (40%) and those earning under $50,000 (37%). This disparity in financial preparedness directly affects the ability to weather economic downturns and feel confident making a long-term commitment like a mortgage.

What Does This Mean for Home Buyers and Sellers?

For prospective buyers, the current environment requires a clear-eyed assessment of personal financial stability. Based on our experience assessment, taking the following steps can help:

• Evaluate your emergency fund. Aim to save at least 3-6 months of essential expenses, including a potential mortgage payment, before actively searching for a home.
• Gauge your job security. Understand the health of your industry and employer. If concerns exist, it may be prudent to delay a purchase until the situation stabilizes.
• Recognize your leverage. Buyers who feel secure may find a less competitive market with more room for negotiation.

For sellers, understanding buyer anxiety is key to a successful transaction. Pricing your home competitively from the start and offering flexibility on terms like closing dates can be decisive factors in attracting cautious but qualified buyers in this climate.