This report was originally published on July 29, 2024, exclusively for subscribers of Intel, the data and research arm of Inman. Subscribe to Inman Intel for a deeper analysis of the business of real estate.
More U.S. adults have become open to buying a home in the coming months, and the factors driving active shoppers amid this depressed market are more varied than is often assumed, a new Intel survey finds.
- The share of working U.S. adults who said they were at least somewhat likely to buy a home in the next 12 months inched up by 3 percentage points from April to July, according to the Inman-Dig Insights consumer survey.
- The share of adults who said they were actively shopping for homes also rose over the past three months — although this likely reflects seasonal activity in the heat of the summer market, when housing demand is near its peak.
The Inman-Dig Insights consumer survey ran in early July and received responses from 3,000 adults with full-time or part-time jobs. Its results shed light on how potential real estate clients — both in the present and near-future — are thinking about the home market.
The survey also produced a host of detailed insights into consumer attitudes, including:
- What drove today’s active homebuyers to the market
- What non-buyers say will pull them into the market in the months ahead
- How renters and homeowners are viewing the landscape in their own unique ways
Read the full findings in the report below.
More than just ‘forced to move’
Even in times of poor affordability, major life changes help prop up home transactions: events like job change, marriage, having kids, death or divorce.
And that’s part of the picture for sure.
But real estate professionals — and now, homebuyers themselves — will also tell you it’s more complex than that.
Active homebuyers tell the Inman-Dig Insights consumer survey that they are motivated by a host of factors — including, surprisingly, the desire to find a larger or nicer home even in this high-rate environment.
Share of active homebuyers in early July who said their decision to buy is motivated in part by…
- 32% — Seeking larger or nicer house
- 31% — Job-related relocation
- 29% — Financial benefits of homeownership
- 25% — Moving closer to family
- 17% — Getting married
- 17% — Planning to retire
- 15% — Having a child
- 15% — Seeking second home or investment property
- 15% — Seeking smaller or more affordable house
- 11% — Seeking better school district
- 8% — Getting divorced
- 7% — Children moving out of the home
The desire to upgrade one’s home often goes underdiscussed in real estate circles these days, but this survey demonstrates that it remains one of the top factors driving consumers to the home market.
That share of consumers may still be lower today than it was when mortgages were cheaper and homes more affordable. But because July was the first time the survey asked this question, Intel is not in a position say how that share had changed over time.
That said, the active buyers who said they were seeking a larger or nicer house did give some clues as to their thinking. Buyers seeking a home upgrade were less likely to say they were moving for family-related reasons, and more likely to say that a job change, a better school district or plans to retire were driving their decision to buy now.
Intel also identified that significantly different factors are driving homeowners and buyers to the market.
Today’s homeowners actively shopping for homes are more likely than renters to be driven by:
- Job-related relocation — 36%
- Seeking second home or investment property — 22%
- Moving closer to family — 29%
- Planning to retire — 19%
Today’s renters actively shopping for homes are more likely than homeowners to be driven by:
- Getting married — 22%
- Seeking a better school district — 15%
- Seeking a larger or nicer home — 35%
- Financial benefits of homeownership — 31%
These results represent the current pool of buyers that real estate agents were working with day-in and day-out in early July.
But Intel also sought the opinions of buyers who are not yet on the market, but expect to enter it sometime soon.
The next wave of buyers
The next 12 months are likely to bring more buyers into the fold — but they’re likely to be even more sensitive to affordability than the clients of today have been.
They’re also less likely to be investors, and less likely to expect to have to move as a result of a change in their employment.
- Only 20 percent of near-term future buyers say that they expect they’ll be driven by a job-related relocation. That’s compared to 31 percent of today’s buyers who say a job change is driving them to move. This may be largely driven by the fact that job changes can be difficult to predict in advance.
- A mere 9 percent of future buyers say they’ll be seeking a second home or investment property, compared to 15 percent of today’s buyers who say the same.
Instead, the next wave of homebuyers are especially likely to say they’ll be motivated by a desire to downsize.
- 19 percent of near-future buyers say they’ll look at downsizing or lowering their monthly housing costs when they hit the market, compared to 15 percent of buyers today.
- 11 percent of future buyers say that they’re planning to move because children are moving out of the home, compared to 7 percent of active buyers.
Certain tendencies also stood out among homeowners and renters who were likely to buy a home in the next 12 months.
Today’s homeowners who are not actively shopping, but expect to buy in the coming year, are more likely to be driven by:
- Planning to retire — 21%
- Getting divorced — 11%
- Children moving out of the home — 12%
Today’s renters who are not actively shopping, but expect to buy in the coming year, are more likely to be driven by:
- Financial benefits of homeownership — 36%
- Seeking a larger or nicer home — 38%
- Seeking a smaller or more affordable home — 20%
It’s notable that renters can be driven one of two ways, depending on their situation: Many are seeking a larger or nicer place than their current rental unit, as expected.
But we also see signs that renters care more about affordability than other groups. As such, some consumers renting a house may be looking to move into a smaller place when they purchase.
The renters who plan to buy in the next 12 months are more likely to say they’re driven by the financial benefits of homeownership than renters who are shopping for homes today. In today’s challenging affordability environment, it’s possible that active shoppers are a bit less enthusiastic that their home purchase will be a sound financial investment.
About the Inman-Dig Insights Consumer Survey
The Inman-Dig Insights consumer survey was conducted from July 5 through July 7 to gauge the opinions and behaviors of Americans related to homebuying.
The survey sampled a diverse group of 3,000 American adults, ranging in age from 24 to 65 and employed either full-time or part-time. The participants were selected to produce a broadly representative breakdown by age, gender and region.
Statistical rigor was maintained throughout the study, and the results should be largely representative of attitudes held by U.S. adults with full- or part-time jobs. Both Inman and Dig Insights are majority-owned by Toronto-based Beringer Capital.