Survey: Homebuyers Focused on Long-Term Goals, Not Starter Homes

Most first-time homebuyers are approaching homeownership with a long-term mindset, according to Bank of America’s first-ever Homebuyer Insights Report released today. Sixty-nine percent said they would rather wait to purchase a home that was nicer and would meet their future needs, compared to 31 percent who would move into a starter home now. Owning a single-family home in the suburbs was the most common goal among buyers, including 52 percent of first-time buyers.

Homeownership continues to be a top goal among consumers. For many first-time homebuyers, emotional factors were more likely to influence their decision than financial ones; 52 percent said that “wanting a place to call their own” was a key motivating factor, and among millennials, 58 percent associate homeownership with “adulthood.”

Cost was ranked the most important factor for homebuyers when considering a purchase, though the survey noted that homebuyers are sticking to their budgets — 65 percent of buyers said their total costs were what they had expected. Two-thirds of millennial homebuyers said they expect to have some type of help from their parents when buying a home, including money for a down payment, furnishing the home or help with a monthly mortgage. First-time homebuyers also expressed an interest in tools to help them save, with 85 percent willing to use an automatic savings tool to take money from each paycheck.


About Author

Monica C. Meinert is a senior editor at the ABA Banking Journal and VP for editorial strategy at the American Bankers Association, where she oversees ABA Daily Newsbytes.