While the ongoing U.S. war with Iran is sending ripples through financial markets, the majority of U.S. residents are pressing ahead with plans to buy homes and cars, though a sizable portion is hitting the brakes.
A new survey commissioned by real estate brokerage Redfin reveals that 25% of U.S. consumers are either delaying or canceling major purchases due to the overseas conflict. However, 56% of respondents reported that the geopolitical tensions have no impact on their timelines for big-ticket items, according to the report.
The military clash has already driven up oil prices and injected volatility into financial markets. For the housing sector, this broader economic uncertainty threatens to push mortgage rates higher, creating a potential hindrance for would-be homebuyers who are already navigating a challenging affordability landscape.
Despite the headwinds, the company notes that the Iran conflict’s impact on major purchase plans is relatively small, mirroring the effects of the federal government shutdown last fall, which prompted a similar 22% of survey respondents to report canceling or delaying purchases.
By contrast, other recent economic concerns have had a much sharper impact on consumer confidence. According to Redfin, more than half of respondents reported delaying or canceling major purchases due to tariffs implemented last April. Similarly, in August, 42% of U.S. consumers delayed or canceled a major purchase, citing concerns about job security amid worsening employment numbers.
On the ground, real estate professionals are seeing a mixed reaction. Redfin reported that agents in areas with heavy military populations, such as San Antonio and San Diego, have not yet seen the conflict widely surface in everyday discussions with buyers and sellers.
However, hesitation is emerging in other markets. A Washington, D.C.-based Redfin agent noted that one client paused their housing search directly due to uneasiness regarding Middle East tensions. Meanwhile, a Chicago agent observed a general air of hesitation, particularly among first-time homebuyers, driven by the conflict and its broader economic headwinds.
The findings stem from a Redfin-commissioned survey conducted by polling giant Ipsos on March 5-6. The nationally representative poll of 1,005 U.S. residents has a 3.8% margin of error.
