Who are Today’s Home Buyers
January 14, 2016
National Association of REALTORS®
Research Department
Jessica Lautz
Managing Director, Survey Research and Communications
@JessicaLautz
Myths We Hear About Who is Buying and Why
Gen Y want to rent
and are renters
(or live w/mom &
dad forever)
Exodus of the
suburbs and into
the city
Baby Boomers
downsizing and
swarming Florida
Share of Home Sales
Vacation
Home Buyers,
21%
Investor
Buyers,
19%
2015 Investment and Vacation Home Buyers Survey
Primary
Home
Buyers,
60%
Profile of Home Buyers and Sellers
• Annual survey of recent home
buyers
• Purchased in the last year
• Report started in 1981
– The year MTV was launched
– Reagan was president
– IBM releases its first PC
• Survey 75,000 to 100,000 recent
home buyers
Rise in Household Income
$110,000
$98,700
$100,000
$90,000
$86,100
$80,000
$69,400
$70,000
$60,000
$50,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
All Buyers
First-time Buyers
2014 Profile of Home Buyers and Sellers
Repeat Buyers
70%
No Longer…All the Single Ladies
67%
60%
50%
40%
30%
22
20%
15
9
7
2
10%
0%
2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Married couple
Profile of Home Buyers and Sellers
Single female
Single male
Unmarried couple
Other
First-time Buyers Under Historical Norm
60%
50%
50%
40%
30%
20%
30%
33%
32%
Historical norm is 40% among primary residence buyers
%
1981
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
10%
Profile of Home Buyers and Sellers
But…
Gen Y is the largest cohort of
home buyers for the
3rd consecutive year
Profile of Home Buyers and Sellers
Desire of Gen Y to Buy is Still Present
64% of first-time buyers bought
a home
for
the
pure
desire
73% of young
renters
also believe
it would
be difficultof
to get a
mortgage today
owning a place of their own
59% of young renters (18 to 39) believe owning a home makes
more sense
75% believe home ownership is an important long-term goal
73% believe ownership is an excellent investment
FannieProfile
Mae, 2013
Demand
Housing and Community Survey
2015
of Home
BuyersInstitute
and Sellers
Where to go?
57 million live
in a multigenerational
household
Of those who
are 25-34
20% of the
unemployed
live with
parents
Double the number of
multi-generational
households than 1980
12% of
employed live
with parents
Pew Research, Federal Reserve Bank of New York
Multi-Generational Home Buying
1 in 5
Younger
Boomers
purchased a
multigenerational
home
Spend
More Time
w/Aging
Parents
Cost
Savings
13%
Bought
Multi Gen
Home
Children
Over 18
Moving In
2015 Profile of Generational Trends
Caretaking
Aging
Parents
Expected Tenure Remains High
16
14
12
10
8
6
4
2
0
9
6
10
10
12
10
15
15
15
15
15
10
10
10
10
10
7
2006 2007 2008 2009 2010 2011 2012 2013 2014
First-time Buyers
Repeat Buyers
Profile of Home Buyers and Sellers
Buyers are Buying
Where and What
House Type of Choice?
3
bed
2
bath
Detached
Single
Family
Home
Silent Generation Buying Condos
90%
84%
89%
82%
80%
81%
71%
70%
60%
50%
40%
30%
20%
10%
0%
7% 6%
3%
Gen Y
5%
5%
2%
Gen X
9%
6%
3%
9%
5%5%
Detached single-family home
Younger
Older
Boomers
Boomers
Townhouse/row house
Condos
Other
12%
10%
8%
Silent
Generation
Profile of Home Buyers and Sellers
Yes, Gen Y Lives in the City Center—So did
Gen X and the Baby Boomers
60%
50%
40%
58%
42%
32%
29%
30%
20%
10%
0%
53%
51%
51%
17%
1%
Gen Y
13%
13%
1%
2%
Gen X
Suburb/Subdivision
Urban area/Central city
34%
33%
Younger
Boomers
8%
5%
Older
Boomers
Small town/rural area
Resort/Recreation area
38%
13%
7%
Silent
Generation
Profile of Home Buyers and Sellers
While All Want, Central AC and a Wired
House, these Buyers Want:
Single Female
2013 Home Features Survey
Single Male
Commuting Costs
Not
Important,
32%
Very
Important,
30%
Somewhat
Important,
38%
2015 Profile of Home Buyers and Sellers
Environmentally Friendly Features
Heating and cooling costs
35%
49%
15%
Energy efficient appliances
22%
45%
33%
Energy efficient lighting
22%
45%
33%
Landscaping for energy
conservation
10%
Environmentally friendly
community features
10%
37%
53%
34%
56%
Solar panels installed on
2% 9%
home
0%
Very Important
89%
20%
Somewhat Important
40%
Not Important
60%
80%
100%
2015 Profile of Home Buyers and Sellers
How Searching?
First Step Taken During the Home Buying
Process
42% - Looked online for properties for sale
14% - Contacted a real estate agent
13% - Looked online for information about home buying process
7% - Contacted a bank or mortgage lender
7% - Drove-by homes and neighborhoods
5% - Talked with a friend or relative about home buying process
2015 Profile of Home Buyers and Sellers
Value of Website Features
87% Found photos
very useful
84% Found
detailed
information about
properties
42% Real estate
contact
information
2015 Profile of Home Buyers and Sellers
45% Found
interactive maps
very useful
42% virtual tours
very useful
REALTOR® Preferred Method of
Communication with Clients
93%
91%
E-mail
Telephone
31%
Instant Messaging
(IM)
2015 Member Profile
85%
Text Messaging
26%
Postal
Mail
The top reasons for REALTORS ® using social
media
Center for REALTOR® Technology Survey
Real Estate Remains a Business of Relationships
Where Clients Come From
53% buyers
used an agent
that was
referred to
them/had
worked
w/before
64% sellers
used an agent
that was
referred to
them/they
had worked
w/before
2/3rds of
buyers/sellers
only contact 1
agent
Among members 40% business is from
repeat clients and referrals
2015 Member Profile and 2014 Profile of Home Buyers and Sellers
Most Difficult Steps of Home Buying Process
Finding the right property was ranked highest
among all generations for the MOST
DIFFICULT STEP in home buying
Finding
the right
property
51%
Paperwork
23%
Understanding
the
process
14%
Saving for
the down
payment
13%
2015 Profile of Home Buyers and Sellers
Getting a
mortgage
13%
No
difficult
steps
17%
21% of Repeat Buyers noted there
were no difficult steps compared to
only 9% of First-time Buyers
Buyer Use of Agents
100%
87%
90%
80%
70%
60%
69%
50%
40%
30%
20%
10%
0%
2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Through a real estate agent or broker
Directly from builder or builder's agent
Directly from the previous owner
2015 Profile of Home Buyers and Sellers
Agent-Assisted Sales All Time High
100
90
80
70
89
77
60
50
40
30
20
19
10
8
3
0
All FSBO (For-sale-by-owner)
Profile of Home Buyers and Sellers
Agent-assisted
Other
Join NAR Research's Social Media
facebook.com/narresearchgroup
@NAR_Research and @JessicaLautz
economistsoutlook.blogs.realtor.org
pinterest.com/narresearch/
instagram.com/narresearch/