One-quarter (25%) of Americans are delaying or canceling plans for a major purchase like a home or car because of the military conflict with Iran, according to a new survey fielded by Ipsos and commissioned by Redfin, the real estate brokerage powered by Rocket.
Most Americans (56%) said the Iran war has no impact on their plans to make a major purchase.
The U.S. is embroiled in a military conflict with Iran, which has driven oil prices up and caused volatility in financial markets. That could push mortgage rates up, which is one potential hindrance for would-be homebuyers. It may also impact the housing market by exacerbating economic uncertainty, which can make people more cautious about major financial commitments. But as of the first week of March, most Americans were undeterred in plans to buy something costly like a home or car.
Many Redfin agents in places with major military populations, like San Antonio and San Diego, say the Iran conflict hasn’t yet come up as they discuss buying and/or selling homes with clients. But a few Redfin agents have reported changes in buying plans:
- A Washington, D.C. Redfin agent said one house hunter is pausing buying plans due to uneasiness about tensions in the Middle East.
- A Redfin agent in San Diego said two buyers are stepping back from their home searches because they have family in Iran and are unsure about future plans.
- In Chicago, a Redfin agent said there’s a general air of hesitation about buying a home, especially among first-time buyers, because of the Iran conflict and its economic tailwinds.
Iran Conflict Has Smaller Impact on Major Purchase Plans Than Tariffs, Job Security Concerns
The impact of the Iran conflict on home- and car-buying plans is similar to the impact of the federal government shutdown in October: Small. A Redfin survey from October found that 22% of Americans were canceling or delaying plans for a major purchase due to the government shutdown, while 65% said it had no impact.
Other economic concerns from the last year have affected would-be buyers’ mindsets much more than the Iran conflict. In April, more than half of Americans said they were delaying or canceling plans to make a major purchase like a home or car due to tariffs. In August, 42% of American workers said they were delaying or canceling a major purchase due to feelings about job security.
To view the full report, including a chart and our survey methodology, please visit: https://www.redfin.com/news/iran-conflict-homebuying-plans
