TRULIA OPTIMISTIC ABOUT LONG-TERM HOUSING DEMAND AS 80 PERCENT OF HOMEOWNERS PLAN TO BUY AGAIN
Latest Survey Findings Say 59 Percent of Renters Aspire to Be Homeowners, But More Than Half Of Those Who Wish To Buy A Home At This Time Say Saving Enough for a Down Payment Is a Big Obstacle
SAN FRANCISCO, September 20, 2011 – Trulia today released the results of its biannual American Dream survey, which has tracked American attitudes towards homeownership since 2008. Harris Interactive conducted this online survey on Trulia’s behalf between August 30 to September 1, 2011 among 2,207 U.S. adults aged 18 and over.
· Short-term Obstacles Creating Uncertainty for Most Homebuyers: Falling home prices and low interest rates aren’t enough to overcome the biggest obstacles to homeownership for aspiring homeowners. Among renters who wish to buy a home at this time, more than half (51 percent) said saving enough for a down payment is a major barrier to homeownership. This especially rang true for young adults (18-34 year olds), with 62 percent saying this was what kept them from purchasing a home at this time. Meanwhile, mortgage qualification and having a poor credit history were a bigger concern among 35-54 year olds.
· “Despite the slow and weak economic recovery and stumbling housing market, the American Dream of homeownership is alive and well. Given the strong intent to buy a home among today’s renters and homeowners, I am optimistic that long-term housing demand will recover – even though today’s prices tell a different story,” said Jed Kolko, Trulia’s Chief Economist. “But the homes that people will want in the future will look different than today’s housing stock. Retiring baby boomers won’t want big suburban houses: they care more about easy access to restaurants and retail and will be willing to trade down. High gas prices – which make long-distance commuting more expensive – will accelerate this trend especially among Millennials, as would changes to the mortgage interest deduction that reduce demand for expensive homes. But in many cities, regulations against dense development push new construction to outlying, lower-density areas. ”
· “From saving enough for a down payment to qualifying for a mortgage and having a poor credit history, today’s aspiring homeowners face many financial obstacles in order achieve their American Dream of homeownership,” said Jed Kolko, Trulia’s Chief Economist. “These obstacles keep some would-be homeowners from taking advantage of low mortgage rates; on the other hand, they prevent some people from buying homes they can’t really afford. Government homeownership policies can target some of these obstacles to homeownership, but only stronger economic recovery will help households facing multiple obstacles become better able to buy homes.”
The August 2011 survey was conducted online within the United States by Harris Interactive via its Quick Query omnibus product on behalf of Trulia between August 30 – September 1, 2011 among 2,207 adults (aged 18 and over), of whom 1,392 were homeowners and 758 were renters.
The January 2011 survey was conducted online within the United States by Harris Interactive via its Quick Query omnibus product on behalf of Trulia between January 20-24, 2011 among 2,079 adults (aged 18 and over), of whom 1,339 were homeowners and 683 were renters.
The July 2011 survey was conducted online within the United States by Harris Interactive via its Quick Query omnibus product on behalf of Trulia between July 22-26, 2011 among 2,055 adults (aged 18 and over), of whom 1,345 were homeowners and 663 were renters.
Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was used to adjust for respondents’ propensity to be online. These online surveys are not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodologies, including weighting variables, click here.
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