How much do you know about the people who are buying homes from your company?
Trends in the American housing market are impacting the way real estate developers develop and home builders build — which also trickles down to marketing strategies, brand positioning and overall messaging. Finding an opportunity by following trends in the marketplace means the chance to crush competition and boost results. With that, here’s what you need to know about the latest trends and research on American home buyers.
Zillow recently surveyed over 13,000 people to determine how Americans rent, buy, sell and even think about real estate as part of the report research. Some of their discoveries could be surprising, or perhaps to today’s renters, buyers, sellers and homeowners, the findings ring very true.
Buying is tough in all markets. For most Americans, it’s the biggest purchase they’ll ever make as well as a significant financial investment they’ll tap into as part of retirement. In particular cities, purchasing a home has become a competitive game, complete with bidding wars and offer negotiations. It makes sense that most buyers rely on agents to help them through the process.
- Today’s buyers have a median age of 40, although the majority (71%) of first-time buyers are Millennials.
- The median household income of the typical buyer is $87,500 and most buyers are married or partnered, relying on two incomes to purchase a home.
- The typical home in the U.S. purchased has 3 bedrooms, 2 1/2 bathrooms, measures 1,800 square feet and costs $200,000.
- More than anything, buyers want their home to be in a safe neighborhood (71 percent of buyers) and in their price range (67 percent of buyers).
- Other than safety, buyers also want to stay cool. Sixty-two percent of buyers require their homes to have air conditioning.
- Buyers take an average of 4.3 months to search for their new homes — although Millennials take just under four months (3.9 months) and those in the Silent Generation who take the longest at 5.6 months.
- The suburbs rule: 49% of buyers buy there, followed by 31% of buyers buying in urban locations and just 19% of American buyers purchasing in rural regions.
As anyone will tell you, owning a home is a lot of work. It’s also a great investment, especially in many of today’s markets were annual appreciation rates are higher than they have been in decades. Beyond the work and the financial piece, home ownership often has an emotional component as well.
- Homeowners are the oldest, with a median age of 57 years and just 14% are Millennials.
- Homeowners have a median household income of $62,500 and 71% live with a spouse or partner.
- Forty percent of homeowners have a pet (with dogs ranking in top at 30%).
- Almost half of homeowners (46 percent) live in the first home they purchased, although this percentage decreases with age.
- Eighty-six percent of homeowners have no plan to sell in the next three years.
- Less than a quarter of homeowners say their home is in “like-new” condition and more than 60% say their home could use a little updating.
- The top of homeowners’ to-do list for the next year include: painting the interior (25%), improving the bathroom (22 percent) and landscaping (21 percent).
Looking for a team of real estate experts to execute a marketing strategy that focuses on seizing opportunities and taking advantage of current market trends? We’re here to help. Just ask On-Target!.