Post on 05-Jul-2020
Sacrifices, Hurdles, Families, and RoomiesDr. Jessica Lautz
VP, Demographics & Behavioral Insights@JessicaLautz
1. Lack of Affordable Housing Inventory
Low Inventory Driving Prices
6 months
y-o-y ↓ inventory
4-ish months supply
90+ months of
y-o-y price ↑
Existing Home Sales
30%
50%
33%
%
60%
1981 2019
Source: NAR Profile of Home Buyers and Sellers
First-time Buyers Remain at Historical Lows
We Are Short by 5-6 Million Homes
3 bed/2 bath
Single family home
Suburbs & small towns
Close friends & family w/short commute
2019 Home Buyer and Seller Generational Trends Report
2. Buyers are Swiping Left…on Love
First-time Buyers: Skipping the Ring
Profile of Home Buyers and Sellers
75%
53%
27%
10%17%
4%
1981 2019Married Couple Single Female Single MaleUnmarried Couple Other
Median Age of Home Buyers
31
47
29
3336
55
20
40
60
19
81
20
18
All Buyers First-time Buyers Repeat Buyers
Profile of Home Buyers and Sellers
3. Caretaking Now Needs a Lint Brush
Buyers Skipping the Baby
Profile of Home Buyers and Sellers
58%
35%
30%
60%
1985 2019
Children Under Age 18 in Home
Fur Babies Driving Decisions
For Who: unmarried couples & single
females
Where Important: rural & urban areas
What: decide to buy & neighborhood
choice
Source: NAR Profile of Home Buyers and Sellers
4. $tudent Debt is Crushing Finances
How Can Responsible Millennials Save?
Median Student Loan Debt: $41,200 Median Income:
$38,800
Student Loan Debt and Housing Report
Student Debt Delays Home Buying AND Selling
Student Loan Debt and Housing Report
80% Non-owners
83% say student debt
reason
7 yr delay
20% Owners
28% can’t sell &
upgrade
3 yr delay
5. Bank of Mom and Dad
One-Third of First-Time Buyers Used Downpayment Help From Friends & Family
Profile of Home Buyers and Sellers
Profile of Home Buyers and Sellers
First-Time Buyer: Prior Living Arrangement
82%
71%
12%
23%
0%
90%
1989 2019
Rented an apartment or house Lived with parents, relatives or friends
1 in 6 Gen Xers=Multi-Gen Home
Lg SF Home
44% aging rents
34% adult kids
29% cost savings
Source: NAR Profile of Home Buyers and Sellers
6. Bar Has Risen on Buyer Expectations
65% members cited a portion of buyers expect homes to look like TV shows
Profile of Home Staging
71% members cited a portion of buyers are disappointed real homes don’t look like TV shows
Profile of Home Staging
60% members cited a portion of buyers consult family for advice
Profile of Home Staging
Staging: brings buyers, help visual as own, sells faster, more $$$
Profile of Home Staging
7. Tenure is Longerrrrrrrrrr
Actual Tenure in Home is Elevated: Median Years
Profile of Home Buyers and Sellers
6
10
5
10
19
87
20
19
Highest share recorded SELLING and moving to be close to friends & family
8. Budding Issues
Commercial Inventory Changes
Source: Marijuana and Real Estate: A Budding Issue, National Association of REALTORS®
31%
34%
0% 20% 40%
DEMAND HAS INCREASED FOR STOREFRONTS
DEMAND HAS INCREASED FOR LAND
DEMAND HAS INCREASED FOR WAREHOUSES
Only Prescription is Legal Both Recreational & Prescription Are Legal
Source: Marijuana and Real Estate: A Budding Issue, National Association of REALTORS®
Res Leasing: 1/3 seen addendums, 1/5 smell & 1/10 moisture an issue
9. Green Homes
Sustainability: Diverging Message
Limited inventory & affordability
½ of members find buyers interested in sustainable home
2019 REALTORS® and Sustainability Report – Residential
Sustainability 2008 vs 2018 Buyers Ranking of Very Important
% 10% 20% 30% 40% 50%
Landscaping for energy conservation
Environmentally friendly community features
Energy efficient lighting
Energy efficient appliances
Heating and cooling costs
2018 2008
Profile of Home Buyers and Sellers
Common Projects to Remodel for Energy Efficiency
Insulation Upgrade
HVAC Unit
New Front Doors
New Windows
New Roofing
2017 Remodeling Impact
10. Agent Use is TRUSTED
Buyer Use of Agents
Profile of Home Buyers and Sellers
89%
50%
100%
1981 2019
Real estate agent/broker Builder/builder's agentPrevious owner
Agent-Assisted Sales All-Time High
Profile of Home Buyers and Sellers
15%21%
8%
89%
0%
100%
1981 2019
All FSBO (For-sale-by-owner) Agent-assisted Other
Only 5% of U.S. households have heard of iBuyers 8 in 10 would not
consider using
Outside of Real Estate Wonks…
HOME Data: April 2019
11. What about those who just dream of buying?
43.1%
36.2%
20%
100%
1982 2018
U.S. Less than 35 years 35 to 44 years45 to 54 years 55 to 64 years 65 years and over
U.S. Census
U.S. Homeownership Rate, by Age
73
42.1
47.1
40%
80%
1994 2018U.S. Non-Hispanic White
Black American Indian or Alaskan Native
Asian or Native Hawaiian/Pacific Islander Hispanic or Latino
U.S. Census
U.S. Homeownership Rates by Race
1/2 Non-Owners Believe Economy is Improving and…
57% Difficult to Become Owner Given
Personal Finances 34% Next 6 Months: Econ Conditions in Country: Worse
25% Believe U.S. Economy in a Recession
31% More Financial Stress Currently
Source: NAR Profile of Home Buyers and Sellers
¾ Believe Owning is
Their American
Dream
81% want to own
78% owning:
good financial decision
40% can’t afford to
buy
60% lifestyle/ financial change: will buy
Source: NAR Profile of Home Buyers and Sellers
Reasons Behind Ownership Beliefs of Non-Owners
• 73% easier to save money
• 20% less risky than rentingAmong Good Financial Decision
• 44% renting less risky than owning
• 27% watch family/friends have a bad ownership experience
Not A Good Financial Decision
Source: NAR Profile of Home Buyers and Sellers
facebook.com/narresearchgroup
@NAR_Research and @JessicaLautz
www.nar.realtor/blogs/economists-outlook
pinterest.com/narresearch/
instagram.com/narresearch/
www.nar.realtor/research-and-statistics
Free Resources—Find Reports and Follow Us