Recent Home Buyers and Sellers:

Demographics, Home Preferences &

Livability Needs
November 5, 2016
National Association of REALTORS
Research Department
Jessica Lautz
Managing Director, Survey Research and Communications
@JessicaLautz

Myths About Who Are Buying Homes and Why

Gen Y want to remain

renters (or live w/mom
& dad forever)

Exodus from suburbs

and into the city

Baby Boomers
downsizing and
swarming Florida

Just the Facts, Maam

By 2045 majorityminority country

Millennials have
overtaken
Baby Boomers

Same share of
singles as
married couples

Share of Home Sales

Vacation
Buyers,
16%

Investors,
19%

2016 Investment and Vacation Home Buyers Survey

Primary
Home
Buyers,
65%

Profile of Home Buyers and Sellers

Annual survey of recent home buyers
(purchased in the last year)

Report started in 1981

Largest sample size of its kind
Longest running survey of its type
95 percent confidence level with a

confidence interval of plus-or-minus

1.32%.

Rise in Household Income

$110,000

$100,000

$98,000

$90,000

$88,500

$80,000
$70,000
$60,000

$74,600
$72,000

$66,300
$54,800

$50,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
All Buyers
Profile of Home Buyers and Sellers

First-time Buyers

Repeat Buyers

Return of Single Females

90%
81%
80%
70%

66%

60%
50%
40%
30%
22%

20%

17%

10%

8%
7%
2%

1981 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Married Couple
Single Female
Single Male
Unmarried Couple
Other

Profile of Home Buyers and Sellers

First-time Buyers Rising But Suppressed

60%

50%
50%

40%
35%
30%
30%

32%

20%

Historical norm is 40% among primary residence buyers

10%

%
1981 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Profile of Home Buyers and Sellers

Millennials Face Hurdles

Rise in
rents

Flat
wages

Rise
student
loan debt

Rise in
home
prices

Affordability Problems Increasing

67% homeowners good time to buy vs
56% renters & 48% those who live w/someone
65% think it would be difficult to qualify for a
mortgage

West region, renters, younger, and under

$50,000 household income

Housing Opportunities and Market Experience (HOME)

Lack of Affordable New Homes

100%

80%

60%

40%

20%

28%
18%

14%

0%
1981

1987

1991
1995
2000
Previously Owned
Profile of Home Buyers and Sellers

2003

2005
New

2007

2009

2011

2013

2015

Non-Homeowners: Student Debt Delays Home Purchase

80%

71%

70%

60%
50%
40%
30%
13%

20%

5%

10%

10%

2%

%
Yes

No impact

2016 Student Loan Debt and Housing Report

Helped buy
home

Don't know

Don't want to
own a home

Homeowners: Debt Delays Selling & Buying Another Home

36%

Don't know

33%

No, student loan debt did not delay selling home

Yes, too expensive to move & upgrade to a new
home

18%

Yes, problems w/ student loans have impacted

credit for for a future mortgage

7%

Yes, underwater-student loan debt limited ability

to pay more on home

6%
%

2016 Student Loan Debt and Housing Report

10%

20%

30%

40%

Homeownership Unchanging to the American Dream

100%

89%

80%
60%
40%
20%
11%

Yes
Housing Opportunities and Market Experience (HOME)

No

All Buyers
First-time Buyers
Repeat Buyers

50

45

31
30
29
25

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2000

1997

1995

1993

1991

1989

1987

1985

1981

Median Age of Home Buyers

55

52

44

40

35 36

32

Multi-Generational Home Buying

Caretaking
parents
Want larger
home to
pool money

Children
18+ never
left

2016 Profile of Home Buyers and Sellers

Spend time
w/parents
1 in 10
Bought
Multi-Gen
Home
Cost
savings

Children
18+
moving
back in

Prior Living Arrangement of First-time Buyers

100%
21%

15% 12%
80%

4%

60%
40%

80% 81%

74%

20%
0%
1989 1993 1995 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Rented an apartment or house
Lived with parents, relatives or friends
Other

Owned previous residence

Rented the home buyer ultimately purchased

Profile of Home Buyers and Sellers

Self or Spouse/Partner Veteran or

Active-Duty Military Buyer
A veteran
18%

An active-duty
service
member
2%

Neither
80%

Sexual Orientation of Buyers

Bisexual, 1%

Prefer not to
answer, 7%

Gay or lesbian,
3%

Heterosexual or
straight, 90%

Buyers in Senior-Related Housing

14% of all
buyers over
50 years old

Condos &
small towns
resort

30% of buyers
70-90 years
old
Profile of Home Buyers and Sellers

Expected Tenure Remains High

16

15

14

12
10

10

4
2
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
First-time Buyers
Repeat Buyers
Profile of Home Buyers and Sellers

Profile of Home Buyers and Sellers

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2002

2000

1997

1995

1993

1991

1989

11
10
9
8
7
6
5
4

1987

1985

Actual Tenure in Home is Elevated

10

Where Clients Come From

64% sellers
used agent
referred to
them/had
worked
w/before

53% buyers
used agent
referred to
them/had
worked
w/before

2/3rds of
buyers/sellers
only contact 1
agent

Among members 40% business is from repeat clients and referrals

Inventory is Top Struggle with Buying Process

Finding
the right
property
52%

Paperwork
24%

Understanding
the
process
17%

Saving for
the down
payment
13%

Getting a
mortgage
11%
No
difficult
steps
16%
2016 Profile of Home Buyers and Sellers

Buyer Use of Agents

100%
90%
80%
70%
60%
50%

40%

88%

82%
69%

30%
20%
10%

Through a real estate agent or broker

Directly from the previous owner

Directly from builder or builder's agent

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2002

2000

1997

1995

1993

1991

1989

1987

1985

1981

0%

Agent-Assisted Sales at All-Time High

89%

15%

21%

All FSBO (For-sale-by-owner)

Profile of Home Buyers and Sellers

Agent-assisted

Other

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2001

1999

1997

1995

1993

1991

1989

1987

1985

8%
3%

1981

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

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