NAHB reveals “What Home Buyers Really Want” survey.
A recent study from the National
Association of Home Builders (NAHB) shows variations in
home buyer preferences with regards to home size when it comes to age, race and
ethnicity.
NAHB’s “What Home
Buyers Really Want,” surveyed more than 3,600 home buyers across the country on
various characteristics of new homes. Based on the results, the median desired
home size is 2,226 square feet. However, a closer look at the data broken down
by buyer characteristics shows significant differences in how large a home
different types of buyers want.
Age plays an
important role in a buyer’s preferences, with the amount of space requirements
dropping steadily as the age of the buyer increases. Among those younger than
35, the desired home size is 2,494 square feet, compared to 2,065 square feet
among those 65 and older.
“The building
industry wants to know how much space buyers want in their homes,” saidRose Quint, NAHB’s assistant
vice president for survey research, and one of the study's authors. “This study
provides us with new insight into the home size preference of home buyers as a
whole, but also across different demographic groups.”
Race and ethnicity
also impacted home size preferences, with minority buyers desiring more space
than White, non-Hispanic buyers. White, non-Hispanic buyers report wanting
about 2,197 square feet, while Asian buyers desire 2,280 square feet, Hispanic
buyers want 2,347 square feet, and African-American buyers prefer 2,664 square
feet.
According to the
U.S. Census Bureau, after peaking in 2006, median home size fell in 2007, 2008
and 2009, but reversed course and has risen for the past three years. Estimates
indicate that the median size of all single-family homes started in 2012 was
2,309 square feet, and the average was 2,521 square feet.
The primary reason
for the reversal in home size actually built has to do with buyers’ ability to
access credit. Due to overly stringent mortgage lending requirements in recent
years, the less financially-solid buyers have been shut out of the market. As a
result, homes built in the last few years, largely reflect the preferences of
those who are still able to obtain credit and put down larger down payments - typically
wealthier buyers who can afford larger homes.
Source:
NAHB
Home buyer age impacts home size preference according to NAHB Survey
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