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65 May 2025 J O U R N A L May 2025 ยป understanding what that would entail: 76% lacked homeownership literacy until after buying their home, with millennials being the most likely (80%) to have had this knowledge gap. Homeownership literacy includes things like ongoing costs beyond the mortgage (e.g., property taxes, homeowners' insurance, maintenance), different mortgage types, and the re- sponsibilities that come with property ownership, such as routine mainte- nance and potential HOA obligations. Many didn't score well on the finan- cial literacy of homeownership, either: 27% were surprised by unexpected fees during the homebuying process, 33% said they didn't know their current mort- gage interest rate, and 22% were unsure of their monthly mortgage payment. Worse, 40% of homeowners were not using an escrow account to pay their property taxes, which could ex- pose them to large annual tax bills, and 36% didn't have an emergency fund for unexpected home repairs. The financial aspects of homebuy- ing have presented significant hurdles for many prospective homeowners. Only 33% said they've budgeted for all the homebuying costs needed, while 69% fear they'll be priced out of the market due to rising home costs. And 61% of potential buyers said they're adopting a "wait-and-see" approach, holding off until interest rates drop. Basic terminology is also an obsta- cle for many prospective homebuyers: one in eight couldn't define "mortgage," a knowledge gap most pronounced among younger generations (18% of Gen Z prospective homebuyers couldn't define the term). And 43% of all prospective buyers couldn't define "mortgage rate." This lack of knowledge led to one in five prospective homebuy- ers delaying their home purchase. What do renters feel they need to achieve before buying their first house? Over two-thirds (67%) of Gen Z said they had to achieve a certain salary lev- el, and another 65% said they must have saved for a down payment. A quarter of Gen Z renters said they got their home- buying knowledge from TikTok. Conversely, most millennial renters (75%) placed the highest importance on saving for a down payment, while another 54% said they needed to reach a separate savings goal. Gen X renters showed similar priorities to millennials, with 70% focused on saving for a down payment. Their secondary focus (51%) was on improving their credit score. JW Surety Bonds surveyed 1,003 homeowners, prospective homebuyers, and renters in October 2024 to explore their homeownership literacy: 40% were homeowners, 30% were home- buyers, and 30% were renters. Their generational breakdown was Gen Z (11%), millennials (51%), Gen X (30%), baby boomers (8%).