Homebuyers Turn to Wall Street to Fund Main Street

From Wall Street to Main Street: More homebuyers are cashing in stocks to make their move into real estate.

A recent Redfin survey reveals that 1 in 5 prospective homebuyers (20%) plan to sell stocks to help fund their down payment—highlighting just how closely tied the housing market is to stock market performance.

This financial strategy is even more common among current homeowners: 13% say they’ve sold stocks to cover a down payment, while 10% have used stock sales to afford their monthly mortgage payments. On the rental side, only 6% of renters reported selling stocks to cover rent, underscoring the more substantial financial maneuvers required for homeownership.

The data also highlights growing concern over stock market volatility, particularly among buyers aged 50 and up. Many are hesitant to enter the housing market amid fears of declining stock portfolios. This uncertainty has been amplified by recent economic events—such as newly introduced tariff policies under President Trump—which have sparked significant market fluctuations.

Chen Zhao, Redfin’s economic research lead, explained the dual impact of these market swings: “Falling stock prices directly reduce the funds available for down payments, which could cool homebuying demand. But the volatility might also drive some to view real estate as a more stable investment, actually increasing interest in buying a home.”

Zhao also noted that a struggling stock market could lead to lower mortgage rates, which might help balance affordability challenges.

In the hierarchy of down payment strategies, selling stocks ranks third, following:

• Saving directly from paychecks (48%)

• Taking on a second job (29%)

Other notable funding methods include selling another home (16%) and using an inheritance (11%).

As housing affordability remains a pressing concern, these findings demonstrate the creative—and sometimes risky—financial moves today’s buyers are making to achieve homeownership.

📊 Read the full survey from Redfin here: Redfin Survey - April 2025

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