Parsippany, N.J./August 21. 2006/PRNewswire/—A new study commissioned by Coldwell Banker Real Estate Corp. has found that Americans earning at least $75,000 are buying more houses than their parents at a comparable age, with each generation outpacing the home purchase trends of the previous generation. According to the Coldwell Banker 2006 Homeownership in America Study, 66 percent of survey respondents aged 61 and up have owned between two and five homes. Already, 66 percent of baby boomers (aged 42 to 60) have owned between two and five homes.
The younger generations surveyed are mimicking these home buying habits. About half (48 percent) of generation Xers (aged 32-41) and more than one third (36 percent) of echo boomers (aged 31 and younger) have owned between two and five homes. Fifty-eight (58) percent of respondents have owned more homes than their parents did when their parents were at a comparable age.
"These findings suggest that this trend will continue as the younger, upper-income generations age," says Jim Gillespie, president and chief executive officer of Coldwell Banker. "Baby boomers have already equaled the homeownership pace of those 61 and older, and they remain in their prime home-buying years. The fact that generation X and echo boomers are indicating that they have owned multiple homes already shows that they understand the value of buying and owning real estate."
"Interestingly, these homebuyers do not appear to be collecting houses as a means to expand their financial portfolios by constantly moving to bigger and more expensive houses," Gillespie continues. "Instead, our survey respondents indicate that they move according to lifestyle needs. In fact, only 5 percent of respondents view their current home strictly as part of their financial portfolio, compared to 67 percent of respondents who consider their home a 'home' first. When asked if they could sell their current home and get more 'home for their money' without affecting their current lifestyle, 53 percent said they would not move or were not sure."
How and Why People Move
The National Association of Realtors has found that people move once every seven years on average. When asked in the survey for reasons why they move, 48 percent of respondents indicated they moved because of their career, 45 percent cited a better community lifestyle and 27 percent cited a new relationship/marriage. Of note, women are more apt to move for a relationship than men, at 53 percent as opposed to 37 percent, respectively.
Additional reasons for moving include the followsing:
- the need to be closer to family (16 percent)
- a more affordable location (15 percent)
- birth or adoption/growing family (15 percent)
- more affordable housing (13 percent)
- warmer climate (13 percent)
- displeasure with the current home (12 percent)
- and divorce (11 percent)
Fixed up is more appealing than a fixer upper
In terms of the homes most recently purchased, the results suggest that the "do-it-yourself" trend of the past several years is beginning to cool down, at least among higher-income homeowners. A full 68 percent of respondents indicated that the last home they purchased was a brand new house requiring no additional work, or an existing home needing very little renovation.
"Homebuyers may be missing an opportunity to get more house for their dollar by purchasing one that requires some renovation but that can be had at a lower price," Gillespie says. "Sweat equity can transform a home from a fixer upper into a beautiful living space worth much more than its purchase price."
Evolution of homeownership
While marriage or the establishment of a permanent relationship drives entry into homeownership, other life events play a role in the evolution of homeownership. As Americans age, they have more opportunity to own a second home. The study revealed that respondents in the baby boomer and older age groups are 70 percent more likely to own a second home or vacation home than the younger generations.
Homebuyers are also taking aging needs into consideration when they think about homes. Nearly one-third (28 percent) of respondents aged 42 and older said they prefer ranch (one story). "This tells us that the older respondents are thinking about the next period in their lives where mobility around the house will be an important issue," Gillespie notes.
When considering late-life living arrangements that may include living alone, 48 percent of respondents aged 61 plus who indicated a preference said that they would rather remain in their current residence. Thirty-four percent would prefer to move into a smaller residence or a condominium on their own.
"Overall, what we learned ... is that while it is interesting and fun to compare homes across the nation and see what you may be able to get for your money somewhere else, the bottom line is that people don't view their homes as a lottery ticket or cash cow, but as a home," Gillespie adds. "In fact, 63 percent of our respondents indicate that over the past three years they have not taken equity out of their homes, and 77 percent do not expect to in the coming years. While they may need to pack up and move according to job, relationship or lifestyle needs, at the end of the day, Americans still consider a house a home."
| 
