This report was originally published on July 29, 2024 and is available to subscribers only IntelInman’s data and research division. Subscribe to Inman Intel Get a deeper analysis of your real estate business.
A new survey from Intel finds that more U.S. adults are open to buying a home in the coming months, and the factors driving active shopping in this depressed market are more diverse than often thought.
- Percentage of U.S. adults who say they are working At least it’s possible Buy a house within the next 12 months A slight increase of 3 percentage points from April to July, according to Inman-Dig Insights consumer surveys.
- Percentage of adults who say they are Shopping actively Home prices have also risen over the past three months – although this may reflect the market’s hot seasonal activity during the summer, when demand for housing is near its peak.
The Inman-Dig Insights consumer survey was conducted in early July and received responses from 3,000 adults working full or part-time jobs. The results reveal how potential real estate customers—either currently or in the near future—perceive the real estate market.
The survey also provides a wealth of detailed insights into consumer attitudes, including:
- What drives Today’s Active Home Buyers to the market
- What non-buyers say will bring them into the market next few months
- how Tenants and Landlords See the scenery in your own unique way
Read the full findings in the report below.
Not just “forced to move”
Even during periods of less affordability, major life changes can help shore up a home deal: events such as a job change, marriage, having a baby, death or divorce.
That’s certainly part of the picture.
But real estate professionals — and now homebuyers themselves — will also tell you it’s more complicated than that.
Active homebuyers told Inman-Dig Insights Consumer Surveys that they have many motivations, including, surprisingly, a desire to find a bigger or fancier home, even in this high-interest rate environment.
Active home buyers in early July said part of their decision to buy was…
- 32% — Looking for a bigger or nicer home
- 31% — Work-related relocation
- 29% — Financial benefits of owning a home
- 25% — Closer to family
- 17% – marry
- 17% — Planning for retirement
- 15% — Having a baby
- 15% — Looking for a second home or investment property
- 15% — Looking for a smaller or cheaper home
- 11% — Looking for a better school district
- 8% – divorce
- 7% —Children who have moved out of the home
The desire to upgrade a home is often underestimated in the real estate world these days, but this survey shows it remains one of the top factors driving consumers into the residential market.
Today, that share of consumers is likely still lower than it was when mortgages were cheaper and housing was more affordable. But because July was the first time the survey asked the question, Intel couldn’t reveal how that share has changed over time.
That said, active buyers who said they were looking for a bigger or fancier home did give some clues as to what they were thinking. Buyers looking to upgrade their homes are It’s unlikely that they moved because of family reasonsmore likely to say job change, better school district or Plan for retirement Push them to make the decision to buy now.
Intel also found that the factors driving homeowners and buyers to enter the market are very different.
Today’s homeowner Those who are actively buying houses are more likely More driven than renters by:
- Work-related relocation— 36%
- Looking for a second home or investment property— twenty two%
- Closer to family—— 29%
- Planning for retirement – 19%
Today’s tenant Those who are actively buying houses are more likely Than homeowners are driven by:
- get married– twenty two%
- Looking for a better school district—— 15%
- Looking for a bigger or fancier home – 35%
- Financial benefits of owning a home — 31%
These results represent the current buyer pool that real estate agents are working with day in and day out in early July.
But Intel also solicited input from buyers who are not yet in the market but expect to be soon.
next wave of buyers
The next 12 months are likely to bring more buyers on board, but they may be more sensitive to affordability than current customers.
They are also less likely to become investors and less likely to have to move due to a job change.
- only 20% of near-term future buyers said they expect they will be driven by job-related relocation. In comparison 31% Today’s buyers say job changes are prompting them to move. This may be largely due to the fact that job changes are difficult to predict in advance.
- just one 9% of prospective buyers said they would seek a second home or investment property, while 15% The same is said among today’s buyers.
Conversely, the next wave of homebuyers are particularly likely to say they are motivated by a desire to downsize.
- 19% of recent buyers say they would consider downsizing or lowering their monthly housing costs after entering the market compared to other buyers 15% Buyer today.
- 11% of prospective buyers said they planned to move because the children were moving out of the home, and 7% of active buyers.
Certain trends also stand out among homeowners and renters who are likely to buy a home in the next 12 months.
Today’s homeowner People who are not actively shopping but expect to buy in the coming year more likely Driven by:
- Planning for retirement – twenty one%
- divorce– 11%
- The kids move out of the house— 12%
Today’s tenant People who are not actively shopping but expect to buy in the coming year more likely Driven by:
- Financial benefits of owning a home – 36%
- Looking for a bigger or fancier home – 38%
- Looking for a smaller or cheaper home – 20%
It’s worth noting that depending on the tenant’s circumstances, the options can go one of two ways: As expected, many are looking for somewhere larger or nicer than their current rental unit.
But we’re also seeing signs that renters are more concerned about affordability than other groups. As a result, some consumers who rent may consider moving to a smaller location when purchasing.
Renters who plan to buy a home within the next 12 months are more likely to say they are more motivated by the financial benefits of homeownership than renters who buy now. In today’s challenging affordability environment, active shoppers may be less enthusiastic about purchasing a home as a sound financial investment.
About Inman-Dig Insights Consumer Surveys
The Inman-Dig Insights consumer survey was conducted July 5-7 to understand Americans’ opinions and behaviors regarding home buying.
The survey sampled 3,000 U.S. adults, ranging in age from 24 to 65, who worked full or part-time. Participants were selected and broadly representative by age, gender, and region.
Statistical rigor was maintained throughout the study, and the results should be largely representative of the attitudes held by U.S. adults working full- or part-time jobs. Inman and Dig Insights are both majority-owned by Toronto-based Beringer Capital.
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