Aspiring Home

Buyers Profile
January 2018

National Association of REALTORS® Research Department

 Introduction
The Aspiring Home Buyer Profile is an in depth examination of the
consumer preferences of non-homeowners, defined as those that rent
and those that live with someone else (such as family or friends)
without paying rent.

The Aspiring Home Buyer Profile compares and contrasts the

perceptions of homeownership, the American Dream, and housing
affordability from the perspective of non-homeowners.

Data was collected throughout 2017 on a monthly basis as part of

NAR’s Housing Opportunities and Market Experience (HOME)
report, which monitors consumer sentiment about the housing
market. Topics include if now is a good time to buy a home, the
perception of homeownership as part of their American Dream, why
non-owners do not own now, and what would cause them to
purchase in the future.

Additional topics are examined in depth on

http://economistsoutlook.blogs.realtor.org/.

2018 NAR Aspiring Home Buyers Profile

 Owners and Non-Owners

 Of the U.S. consumer households that were surveyed each month in

2017, 63 percent of respondents were homeowners, 28 percent were
renters, and 9 percent lived with someone else.
 Of the non-owners, 46 percent were 34 years or under, 57 percent
make an income of under $50,000, and 41 percent live in suburban
areas.

Living Situation in 2017

9%

28%

63%

Homeowner Rent Live with someone else

2018 NAR Aspiring Home Buyers Profile

 Profile of Owners and
Non-Owners
Age: Owners Non-Owners
34 or under 11% 46%

35 to 44 19% 19%

45 to 54 17% 11%

55 to 64 26% 13%

65 or over 27% 11%

Household Income: Owners Non-Owners

Under $50,000 28% 57%

$50,000 to $100,000 37% 30%

More than $100,000 35% 14%

Location: Owners Non-Owners

Rural 28% 17%

Urban 22% 40%

Suburban 48% 41%

2018 NAR Aspiring Home Buyers Profile

 Good Time to Buy a
Home
 For non-owners, 58 percent felt that now was a good time to buy in Q4
compared to 79 percent of owners.
 For non-owners, the perception that now is a good time to buy a home
was roughly the same across age, income, and city size, with the
exception of the West region which was lower than all other regions.

Good Time to Buy a Home, By Quarter

80% 80% 80%
79%
80%

62%
57% 58%
60% 53%

40%

20%

0%
Q1 2017 Q2 2017 Q3 2017 Q4 2017

Owner Non-Owner

2018 NAR Aspiring Home Buyers Profile

 Good Time to Buy a Home,
Among Non-Owners
Age: 34 or under 35 to 44 45 to 54 55 to 64 65 or over
A Good 59% 62% 62% 59% 63%
Time
Not a Good 41% 38% 38% 41% 37%
Time

Household $50,000 to More than

Income: Under $50,000 $100,000 $100,000
A Good Time 60% 61% 63%

Not a Good Time 40% 39% 37%

Region: Northeast Midwest South West

A Good Time 59% 64% 62% 54%

Not a Good Time 41% 36% 38% 46%

Location: Rural Suburban Urban

A Good Time 62% 62% 57%

Not a Good Time 39% 38% 43%

2018 NAR Aspiring Home Buyers Profile

 Homeownership Part of
American Dream
 For both homeowners and non-homeowners alike, homeownership
is strongly considered a part of the American Dream. For non-
owners, eight in 10 reported that homeownership is part of their
American Dream in Q4. For owners, nine in 10 believe it is part of
their American Dream.

Homeownership Part of American Dream, By Quarter

91% 92%
100% 91% 91%

80%
76% 74%
80% 73%

60%

40%

20%

0%
Q1 2017 Q2 2017 Q3 2017 Q4 2017

Owner Non-Owner

2018 NAR Aspiring Home Buyers Profile

Main Reason Why Do Not
Currently Own
 Non-homeowners cited the main reason why they do not currently
own is that they cannot afford to buy a home. That perception was
was highest in Q4 at 56 percent.

Main Reason Non-Owners Do Not Currently Own, By

Quarter

100% 9%
15% 15% 13%
10%
12% 12%
80% 18%
25%
23% 21% 16%
60%

40%
52% 56%
51% 52%
20%

0%
Q1 2017 Q2 2017 Q3 2017 Q4 2017

Other
Don’t want the responsibility of owning
Currently need the flexibility of renting rather than owning
Can't afford to buy a home

2018 NAR Aspiring Home Buyers Profile

 Want to Own a Home in
The Future
 Throughout 2017, non-homeowners were consistent in their desire to
own a home in the future. Eighty-two percent of non-owners in Q4,
aspired to be homeowners in the future.

Non-Owners Who Want to Own a Home in The Future,

By Quarter

100%
80% 82%
77%
72%
80%

60%

40%

20%

0%
Q1 2017 Q2 2017 Q3 2017 Q4 2017

Non-Owners

2018 NAR Aspiring Home Buyers Profile

 Main Reason Would Buy
In the Future
 The main reasons that non-owners would buy a home in the future are
a change in lifestyle such as getting married, starting a family, or retiring
(32 to 24 percent each quarter); followed by an improvement in
financial situation (30 to 26 percent each quarter); the desire to settle
down in one location (16 to 12 each quarter percent); and a better or
more stable employment situation (13 to 10 percent each quarter).

Main Reason Non-Owners Would Buy,By Quarter

100%
7% 16% 7%
15%
13% 11%
80% 10%
11% 12%
14%
16%
60% 15%

28% 30%
40% 29% 26%

20% 30% 24% 32%

24%

0%
Q1 2017 Q2 2017 Q3 2017 Q4 2017

Other
Better or more stable employment situation
Desire to settle down in one location
Improvement in financial situation
Lifestyles considerations such as getting married, starting a family or retiring
2018 NAR Aspiring Home Buyers Profile
 Saving for Down Payment
Survey respondents were asked questions related to saving for a downpayment given
their current financial situation, if they expect rent to increase, and the impact rent has
on their living arrangements.
 Thirty-six percent of all respondents find saving for a downpayment would be very
difficult,.
 Among generations, Gen Xers are the most likely to say saving for a downpayment
would be very difficult at 47 percent.

Difficulty of Saving for Down Payment, Q3

16%

36%
18%

30%

Very difficult Somewhat difficult Not very difficult Not at all difficult
Difficulty of Saving for Down Payment by Generation, Q3

100% 12% 11% 13%

17% 17%
14%
80% 19% 20% 6%
21%
14%
60% 19% 34%
30%
39%
40%
47% 43%
41% 37%
20%
23%

0%
Millenials GenX Young Old Boomers Silent
Boomers Generation
Very difficult Somewhat difficult Not very difficult Not at all difficult
2018 NAR Aspiring Home Buyers Profile
 Expect Rent Increase
 Fifty-one percent of all respondents expect their rent to increase, which is
consistent for all generations, except for the Silent Generation.
 Those who are single or married are more likely to expect their rent to increase,
in comparison to those who are divorced, separated, or widowed.

Expect Rent Increase by Generation, Q3

100%

80% 49% 48% 49% 43% 47%

40%
60%

40%
51% 50% 50% 52% 50% 43%
20%

0%
All Millenials GenX Young Old Silent
Respondents Boomers Boomers Generation
Expect Rent Increase Do Not Expect Rent Increase

Expect Rent Increase by Marital Status, Q3

100%

80% 47% 44%

43% 57%
60%

40%
51% 51% 43%
20% 33%

0%
Single Married Divorced/Separated Widowed
Expect Rent Increase Do Not Expect Rent Increase
2018 NAR Aspiring Home Buyers Profile
 Rent Increase Impact
 Forty-four percent will move to a cheaper rental property, find a roommate to
reduce costs, or move in with family if rent prices increase. Fifteen percent will
consider buying a home.
 Millennials and males are more likely to consider buying a home if their rent
increases.

Impact of Rent Increase by Generation, Q3

100% 15%
20% 12% 10%
7% 11%
80% 12% 7% 4% 17%
4% 4%
13% 3%
17%
60% 25% 23% 20%
19%
26%
40%
42% 41% 45% 43%
20% 27%

0%
All Respondents Millenials GenX Young Boomers Old Boomers
Renew current lease anyway Move to cheaper rental
Move in with, or find a roommate to reduce cost Move in with family
Consider buying a home
Impact of Rent Increase by Gender, Q3

100% 15%
3% 12%
80% 12% 8%
8%
60% 23% 21%

40%
39% 37%
20%

0%
Male Female
Renew current lease anyway Move to cheaper rental
Move in with, or find a roommate to reduce cost Move in with family
Consider buying a home

2018 NAR Aspiring Home Buyers Profile

 Methodology

The survey was conducted by an established survey research firm,

TechnoMetrica Market Intelligence. Each month, January through
December 2017, a sample of U.S. households was surveyed via random-
digit dial, including cell phones and land lines. Using a computer-assisted
telephone interviewing (CATI) system, TechnoMetrica conducts
interviews from their call center in Ramsey, NJ.

Regional quotas are used, based on four census regions and nine census
divisions.

The data compiled for this report is based on 10,823 completed

telephone interviews of qualified households survey respondents over
a 12-month period from January to December 2017. Approximately
900 interviews are conducted each month. For the annual results, the
margin of error for the survey is +/-3.3 percentage points at the
95% confidence level.

©2018 National Association of REALTORS®.

All Rights Reserved.

May not be reprinted in whole or in part without permission of the National Association
of REALTORS®.

For reprint information, contact data@realtors.org.

2018 NAR Aspiring Home Buyers Profile

 The National Association of REALTORS®, “The Voice for Real Estate,”
is America’s largest trade association, representing 1.3 million members, including
NAR’s institutes, societies and councils, involved in all aspects of the real estate
industry. NAR membership includes brokers, salespeople, property managers,
appraisers, counselors and others engaged in both residential and commercial
real estate.

The term REALTOR® is a registered collective membership mark that identifies a

real estate professional who is a member of the National Association of REALTORS®
and subscribes to its strict Code of Ethics.

Working for America’s property owners, the National Association provides a facility for
professional development, research and exchange of information among its members
and to the public and government for the purpose of preserving the free enterprise
system and the right to own real property.

NATIONAL ASSOCIATION OF REALTORS®

RESEARCH DIVISION
The Mission of the National Association of REALTORS® Research Division is to collect
and disseminate timely, accurate and comprehensive real estate data and to conduct
economic analysis in order to inform and engage members, consumers, and policymakers
and the media in a professional and accessible manner.

To find out about other products from NAR’s Research Division, visit
www.REALTOR.org/research-and-statistics.

NATIONAL ASSOCIATION OF REALTORS®

Research Division
500 New Jersey Avenue, NW
Washington, DC 20001
202-383-1000
data@realtors.org

2018 NAR Aspiring Home Buyers Profile