Highlights from NAR's Aspiring Home Buyers Profile
summary of NAR's recent survey of aspiring home buyers
Posted: February 27, 2017 at 12:00 AM by John McClelland
The National Association of Realtors recently published its 2017 Aspiring Home Buyers Profile, an examination of non-homeowners, using survey results.
Some of the highlights are:
- Of non-owners, 59 percent were 34 years old or less.
- Of non-owners, 63 percent felt that now was a good time to buy
- 8 of 10 non-owners thought that homeownership is part of the American Dream
- Of the main reasons for not owning a home, 55% said they can't afford one, 22% responded that they need the flexibility of renting.
- Sixty-one percent of non-owners do not have student loan debt. 39% do have student loan debt
- Of non-owners, 39% believe they need more than 20% for a downpayment. 26% believe they need 15-20% and 22% of respondents believe they need 10 to 20%.
This data is very intriguing, particularly with the levels of student loan debt and beliefs about downpayment amounts. We have seen reports that student loan debt is a drag on homeownership (John Burns Real Estate Consulting). Additionally, there are many programs, including FHA, which allows for downpayments of 3.5% for those with FICO scores of 580 or higher. There are also some specialized programs around that offer downpayments around 1%.
We can certainly understand the allure of renting, particularly since some industries see a lot of job mobility. For others, its a lifestyle choice. But before that choice is made, its best to consider the options and it is apparent that many do not understand how accessible the ownership side can be.
Study on Student Loan Debthttp://www.realestateconsulting.com/student-loans-will-cost-the-industry-83-billion-this-year/
NAR survey of Aspiring Home Buyershttps://www.nar.realtor/reports/aspiring-home-buyers-profile