This is an excellent detailed analysis of the state of the housing consumer when it comes to real estate and homeownership issues. For those who like to study this kind of material, this is well worth your read. For those of you who are investors, or thinking about becoming an investor, it certainly appears that there will be plenty of supply of tenants for the foreseeable future. It’s been my belief since we housing crash which began in 2007 and then soon followed by the financial crash in 2008 that those events were so massive that they may have permanently changed the psyche of the country when it comes to home ownership. That said, do I think we are headed to a 50% ownership society and 50% rentals? No. But we won’t ever see the 70% ownership numbers again in my lifetime and I would expect we’ll just continue to drift closer to 60/40. While those numbers don’t look huge, they are indeed transformational for the industry, American society and culture.
Big Builder is the industry news source for large national home builders. The study is called, “Housing 360: Insights into Homeownership” where they surveyed 3,000 people and conducted six focus groups. They need to stay on top of the multi-billion dollar new home business and it’s very interesting to read their analysis and insight regarding today’s home consumer and what they are thinking. Apparently many are in the same boat as one gentleman was quoted as saying, “If I could get a full-time job with a decent salary, I’d buy a house.”
Some key highlights of the Housing 360 report:
- 7 out of 10 think now is a good time to buy a home
- Many who bought homes during the boom wish they hadn’t – (perhaps a little buyer’s remorse?)
- 25% of survey respondents are underwater on their homes
- 72% still believe it’s important to own their own home
- 67% say that their current home is fine – general across the board apathy among potential home buyers
- 47% are concerned that if they did sell in order to go buy a new home, would they get a fair price for their current home?
- Of those surveyed who are renters, only 25% said their current home is fine, however, 45% of the renters said there is no urgency to move
- Concerns are high about down payment expectations and whether or not they will even qualify for a mortgage
This is by far the most informative article I have read about the current state of potential home buyers and sellers. The National Association of REALTORS publishes a report each year, but all too often that just seems to come off as too self serving. This, on the other hand, is very insightful. I highly recommend you read the article and for those who want the actual research report, please see Hanley Wood Housing 360: Insights into Homeownership.
On a more local note, while this report details what the home builders must do to attract new construction home buyers, clearly the home builders operating in Plymouth, Maple Grove, and Medina Minnesota are doing an outstanding job given the recent explosion in construction and sales activity. To stay on top of what’s happening locally in the northwestern suburbs of Minneapolis, be sure to check out Northwest Plymouth where I continue to chronicle the rebirth of the Twin Cities home construction market.
- UK home ownership levels may never recover, expert says (money.marksandspencer.com)
- Home Affordability Currently at 1971 Levels (theevergreenscene.com)
- Is Now The Time To Consider Real Estate To Round Out Your Investment Portfolio? (connecttimes.com)