Executive Summary
High rates of interest and home values mark continued affordability challenges for consumers. While these developments reshape the homebuying course of and consumers’ plans and preferences, many consumers’ behaviors, intentions, and preferences have remained comparatively secure through the years. Amid the flurry of challenges, a lot of the for-sale market stays following the pandemic-catalyzed new ‘normal.’
The 2023 Consumer Housing Trends Report (CHTR) supplies a snapshot of what housing customers are considering and doing in early-to-mid 2023. In this report, we take a deeper take a look at consumers (family resolution makers that personal their major residence and moved to a home they bought up to now yr); In different experiences, we look at renters, sellers, and new development consumers extra carefully. Information about who consumers are in 2023 can equip customers with the instruments they should make knowledgeable choices on this remodeling housing market panorama.
Who are consumers?
The median US purchaser is 40 years outdated, partnered or married, has not less than some faculty schooling, and is most certainly to purchase a home within the South. Demographic change tends to play out over a very long time: Most of those traits haven’t modified considerably, if in any respect, over the previous few years.
What do their houses appear to be?
Most consumers bought a single-family indifferent home (77%). Townhouses and rowhouses make up about one in each fourteen bought houses (7%). Another 7% reported shopping for a rental and 6% bought a manufactured or cellular home. About 3% mentioned they purchased a duplex or triplex, and about 1% purchased a ship, RV, van, or one other kind of home.
Buying a home stayed difficult
We noticed most of the identical purchaser dynamics and developments from final yr proceed into this yr. Like the previous two years the everyday purchaser reported submitting two gives, up from one supply over the previous three (2018 – 2020). At the identical time, the variety of first-time consumers continued to pattern upward. After falling to 37% of consumers surveyed in 2021, the share of first-time consumers continues to develop – reaching 50% in 2023 – up from 45% final yr. In earlier years, a aggressive, low-inventory market doubtless contributed to the historic falling share of first-time consumers; nonetheless, recent will increase within the cost of buying a mortgage, coupled with financial uncertainty, could clarify would-be repeat consumers staying put. These tenured owners are prone to have favorable mortgage charges that they might lose in the event that they moved, whereas first-time consumers are much less prone to think about such a trade-off.
What expertise do they need for home buying?
Simply put: most consumers need digital instruments. When requested in the event that they agreed with a collection of statements about their want for 3D and Virtual home tour expertise, consumers tended to not less than considerably agree that such instruments can be useful. Majorities of consumers considerably or fully agreed that 3D excursions would give them a greater really feel for the house than static images (72%) and that unlocking properties on their telephone and touring them in-person on their very own time can be simpler (68%). Most agreed not less than considerably that they wished that extra listings had 3D excursions (67%) and most well-liked to schedule in-person excursions on-line (66%).
Survey Methodology
Research Approach
In order to realize a complete understanding of U.S. consumers, Zillow Group Population Science performed a nationally consultant survey of greater than 6,500 consumers. The research was fielded between April and July 2023. Wherever attainable, survey questions from earlier years have been requested in the identical method this yr to permit for the measurement of year-to-year developments in key areas of curiosity.
For the aim of this research, “buyers” refers to family resolution makers 18 years of age or older who moved to a brand new major residence that they bought up to now two years. Most consumers on this pattern (64% unweighted; 59% weighted) bought inside the previous yr.
As with final yr, the CHTR Buyers report consists of outcomes from a number of surveys of consumers. Decades of analysis has demonstrated that respondents can develop into fatigued, biasing estimates (Groves et al. 2009; Jeong et al. 2002; Lavrakas 2008; Vannette & Krosnick 2019). Fatigued respondents can cease finishing (“drop off”) the survey; to the extent that fatigue is nonrandom (e.g., affecting working mother and father greater than different teams), outcomes could also be biased in the direction of sure teams of individuals.
Fatigued respondents may additionally develop into much less engaged with the survey offering inaccurate responses to complete the survey as rapidly (and effortlessly) as attainable. At a sure level, they could begin skimming questions and reply the query they suppose they’re studying (even when it’s not what the survey is definitely asking) and even begin filling in responses at random.
Sampling & Weighting
Results from this survey are nationally consultant of consumers. To obtain representativeness, ZG Population Science used a two-prong method. First, the preliminary recruitment to the pattern was balanced to all consumers from the U.S. Census Bureau, 2021 American Community Survey (ACS) on the premise of age, relationship standing, revenue, ethnicity/race, schooling, area and intercourse. Additional focused subgroups have been sampled primarily based on all key family demographic traits. Second, statistical raking was used to create calibration weights to make sure that the distribution of survey respondents matched the U.S. inhabitants with respect to plenty of key demographic traits obtained from analyses of the U.S. Census Bureau’s 2021 American Community Survey and 2022 Current Population Survey Annual Social and Economic Supplement (CPS ASEC).
To be sure that this weighting process didn’t drive noticed outcomes, we created a number of various units of weights for key estimates of curiosity. These various weights included a number of variations with extra inhabitants traits– particularly those who might be correlated with estimates of curiosity– from exterior sources, in addition to propensity matching to raised seize a given respondent’s underlying chance of taking part within the survey. None of the choice units of weights substantively shifted the estimates examined.
Quality Control
To scale back response bias, survey respondents didn’t know that Zillow Group was conducting the survey. Several extra high quality management measures have been additionally taken to make sure information accuracy:
- We recognized and terminated any skilled respondents, robots or these taking the survey on a number of gadgets.
- Completion instances have been recorded to make sure that surveys submitted by the quickest respondents, who could have rushed via the survey, didn’t present poor high quality information. If needed, these respondents have been faraway from the pattern.
- In-survey high quality management checks recognized illogical or unrealistic responses.
Additional Data Sources
Unless in any other case specified, estimates on this report come from the Consumer Housing Trends Report (CHTR) 2023, and year-over-year comparisons additionally use information from CHTR 2018, CHTR 2019, CHTR 2020, CHTR 2021 and CHTR 2022. To present a fuller image of the state of home leases and consumers’ traits, preferences and behaviors, we additionally analyzed information from different sources:
- U.S. Census Bureau, 2021 American Community Survey – The most not too long ago accessible dataset from the U.S. Census Bureau’s survey of the U.S. inhabitants. The ACS is the nation’s largest survey and is predicated on a chance pattern; as such, it’s thought of one of many main sources of knowledge on U.S. inhabitants and housing.
- U.S. Census Bureau, 2022 Current Population Survey Annual Social and Economic Supplement – The CPS ASEC gives probably the most recent demographic estimates on the US inhabitants.
- Zillow.com web site metrics – To present extra context for survey outcomes, ZG Population Science additionally examined inner Zillow information on itemizing info.
The Typical Buyer & Home Bought
In this part, we offer a high-level overview of key purchaser info and what their houses appear to be. According to the Census Bureau American Community Survey (ACS), 5% of adults within the nation are recent consumers. Throughout this part, details about consumers comes from CHTR, and details about different teams comes from ZG Population Science analyzes utilizing ACS information.
Age
The median age of U.S. consumers is 40, whereas the common skews increased (42 years outdated). About half (53%) of consumers have been born earlier than 1980; almost one in 5 consumers (17%) are of their twenties or youthful, whereas roughly 1 / 4 (23%) are of their sixties or older. In different phrases, the age distribution of consumers represents considerably of a center floor in terms of the U.S. inhabitants: they’re sometimes youthful than tenured owners (those that haven’t moved up to now yr), however older than renters.
| Age Group | Percent of Buyers | Percent of Household Decision Makers | Percent of US Adults |
| Ages 18-29 | 20% | 13% | 20% |
| Ages 30-39 | 25% | 18% | 18% |
| Ages 40-49 | 16% | 17% | 16% |
| Ages 50-59 | 16% | 17% | 16% |
| Ages 60-69 | 13% | 18% | 16% |
| Ages 70+ | 9% | 18% | 15% |
Source: Census Bureau, 2022 Current Population Survey Annual Social and Economic Supplement
Consistent with age, the most important generational group of consumers is between 29 and 43 years outdated in 2023 — the group colloquially generally known as “Millennials.” About 37% of consumers are Millennials.
| Generation [1] | Percent of Buyers | Percent of Household Decision Makers | Percent of US Adults |
| Gen Z (18-28) | 17% | 13% | 18% |
| Millennial (29-43) | 37% | 27% | 26% |
| Gen X (44-58) | 23% | 24% | 24% |
| Baby Boomer (59-78) | 21% | 30% | 27% |
| Silent Generation (79+) | 3% | 7% | 5% |
Source: Census Bureau, 2022 Current Population Survey Annual Social and Economic Supplement
Race & Ethnicity
About two thirds of consumers are non-Hispanic white or Caucasian (69%), increased than the general share of the U.S. grownup inhabitants that’s white (61%). At the identical time, 17% of U.S. adults establish as non-Hispanic Black or African American, however simply 7% of consumers are Black.
| Race & Ethnicity | Percent of Buyers | Percent of Household Decision Makers | Percent of US Adults |
| White or Caucasian | 69% | 64% | 61% |
| Latinx or Hispanic | 12% | 12% | 12% |
| Black or African American | 7% | 15% | 17% |
| Asian or Pacific Islander | 7% | 5% | 6% |
| Other race | 5% | 4% | 5% |
Source: Census Bureau, 2021 American Community Survey
Region
The largest share of consumers reside within the South (40%), adopted by the Midwest (23%) and West (22%). The smallest share lives within the Northeast (14%). Buyers largely observe the distribution of US adults, with a barely increased focus within the South and Midwest — doubtless as a result of these areas have extra for-sale stock.
The desk under additionally compares this distribution of consumers by area with the distribution of for-sale stock that we see on our website. Consistent with the graph above, the South has probably the most for-sale stock, whereas the Northeast has the least.
| Region | Percent of Buyers | Percent of Household Decision Makers | Percent of US Adults | Percent of For Sale Housing Inventory |
| South | 41% | 38% | 38% | 52% |
| West | 22% | 23% | 24% | 20% |
| Midwest | 23% | 21% | 21% | 17% |
| Northeast | 14% | 17% | 17% | 12% |
Source: Census Bureau, 2022 Current Population Survey Annual Social and Economic Supplement. Share of For Sale Housing Inventory comes from Zillow’s listings information as of July nineteenth, 2023.
Gender Identity & Sexual Orientation
The share of consumers figuring out as LGBTQ+ has been comparatively secure over the previous few years. About one in fourteen (7%) consumers recognized as LGBTQ+ in 2019, the primary yr CHTR requested about sexual orientation and gender id, then 9% in 2020 and in 2023. [2] This doubtless represents the rising share of youthful consumers, who could also be extra prone to really feel comfy self-identifying as LGBTQ+.
Income
Unsurprisingly, consumers are likely to have increased family incomes than the U.S. inhabitants total. The annual median family revenue amongst consumers is roughly $96,590, in comparison with the general nationwide median (2022) of $70,784. [3]
| Annual Household Income | Percent of Buyer Households | Percent of All Households |
| Less than $50,000 | 19% | 36% |
| $50,000 – $99,999 | 27% | 28% |
| $100,000 or extra | 42% | 36% |
Source: Census Bureau, 2022 Current Population Survey Annual Social and Economic Supplement
Education
Buyers are typically extra educated than the general inhabitants of U.S. adults: 49% of consumers have not less than a four-year diploma, increased than 35% of total U.S. family adults.
| Education | Percent of Buyers | Percent of Household Decision Makers | Percent of US Adults |
| High School Diploma or Less | 24% | 35% | 39% |
| Some College | 28% | 27% | 26% |
| Four-year College Degree | 29% | 24% | 22% |
| Postgraduate | 20% | 14% | 13% |
Source: Census Bureau, 2022 Current Population Survey Annual Social and Economic Supplement
Relationship Status
Prior analysis has proven that the acquisition of a home is usually tied to household formation or different life occasions, like a divorce or separation. This relationship between homeownership and household formation helps clarify why over two thirds of consumers are married/partnered (70%) and almost a sixth (15%) have been married up to now.
| Relationship Status | Percent of Buyers | Percent of Household Decision Makers | Percent of US Adults |
| Never Married | 15% | 18% | 25% |
| Married or Partnered | 70% | 59% | 60% |
| Divorced, Separated or Widowed | 15% | 23% | 16% |
Source: Census Bureau, 2022 Current Population Survey Annual Social and Economic Supplement
Household Composition [4]
Buyer households usually tend to report having not less than one pet (78%) than a toddler (40%). Buyer households are additionally extra prone to have a pet than owners who didn’t transfer up to now yr (61%). Dogs are the commonest pet amongst purchaser households (68% report having not less than one) adopted by cats (47%).
| In Household | Buyer Households | Tenured Homeowner Households | All Households [5] | |
| Children below 18 [6] | 40% | 38% | 36% | |
| Dog | 68% | 46% | 38% | |
| Cat | 47% | 34% | 22% | |
| Another pet | 14% | 10% | 10% | |
| NET: Any pet | 78% | 61% | 50% | |
Buying Stayed Difficult, however First-Time Buyers Rebound
Share of first-time consumers continues to develop
Between 2018 and 2021, the share of consumers that bought a home for the primary time trended barely downward (46% in 2018, all the way down to 37% in 2021). In 2022, nonetheless, the downward pattern rebounded: 45% of consumers have been first-timers. 2023 marks a continuation of this pattern: half (50%) of consumers reported shopping for for the primary time.
Census information reveals a recent decline in purchaser age
Recent U.S. Census Bureau information have discovered falling purchaser ages – substantiating earlier and present CHTR findings that first-time consumers (who pattern youthful than repeat consumers) characterize an rising share of consumers total. The typical purchaser (median family resolution maker that moved to a home they personal up to now yr) fell to 41 years outdated in 2021, from 42 in 2020 and 43 in 2019. Consistent with this pattern, the median age of a purchaser family head fell from 44 in 2019 to 43 in 2020 and 42 in 2021. Averages for each metrics (purchaser family resolution maker and head of family) adopted the identical or related downward developments.
Higher mortgage charges incentivize would-be repeat consumers to remain put
After hitting file lows on the finish of 2020 – when many consumers and refinancing owners locked in charges under 3% – right this moment’s mortgage charges sit round 7%. For consumers, this interprets to considerably increased month-to-month mortgage funds for a similar home. And this recent rise in mortgage charges helps clarify why first-time consumers characterize a bigger share of the market; many would-be repeat consumers have locked in a extra favorable price than they might safe on a brand new home. If they have been to promote, transfer, and buy the same (or much more modest) home, they might almost actually pay extra.
Almost all mortgaged owners (94%) report an rate of interest under 7.00% and 90% report one below 6.00%. Other Zillow analysis has discovered that owners with a price below 5% are almost half as prone to think about promoting their home than these with a price at or above 5%.
First-time consumers extra prone to really feel hurried
About one in 5 (22%) first-time consumers mentioned that they’d to purchase a home rapidly — in comparison with a smaller share (16%) of repeat consumers. Conversely, repeat consumers have been extra prone to describe their timeline for home buying as “relaxed.” About three in 5 (43%) repeat consumers mentioned that they have been capable of take their time and discover their choices, in comparison with about two in 5 (38%) first-time consumers.
| Share of Buyers that Described their Timeline as… | Total Buyers | First-Time Buyers | Repeat Buyers |
| Short: I had to purchase a home rapidly | 19% | 22% | 16% |
| Medium: There was some urgency, however I used to be not rushed | 41% | 40% | 41% |
| Relaxed: I used to be capable of take my time and discover my choices | 40% | 38% | 43% |
Cobuying is the norm, particularly for partnered consumers
Most consumers (62%) buy and share possession of their home with not less than one different individual. Half of consumers (50%) cobought with a accomplice or partner. One in seven (14%) say they cobought with a good friend and 12% cobought with a relative.
Most married or partnered consumers cobuy (80%) and 71% buy with a partner or accomplice.[7] Buyers who’re single and by no means married are most certainly to cobuy with a good friend or relative (24%, versus 21% of married/partnered and 14% of divorced/separated/widowed consumers).
| Cobought with | Total | Divorced, separated, widowed | Married or partnered | Never Married |
| Spouse/accomplice | 50% | 7% | 71% | 23% |
| Friend | 14% | 2% | 15% | 16% |
| Relative | 12% | 12% | 12% | 11% |
| NET: Friend/relative | 21% | 14% | 21% | 24% |
| Any cobuy | 62% | 21% | 80% | 44% |
| Did not cobuy | 38% | 79% | 20% | 56% |
Cobuyers surveyed in 2023 have been extra prone to cite affordability (44% in 2023 versus 34% in 2022) and ease of getting mortgage approval (46% in 2023 versus 39% in 2022) as causes for cobuying as a substitute of shopping for on their very own.
| Among cobuyers, causes for cobuying | 2022 [8] | 2023 |
| More reasonably priced than shopping for alone | 34% | 44% |
| I don’t need to reside alone | 18% | 19% |
| Easier to get authorized for a mortgage | 39% | 46% |
| Among cobuyers, causes for cobuying | Total | Never married, divorced, separated, or widowed | Married, partnered |
| More reasonably priced than shopping for alone | 44% | 40% | 46% |
| I don’t need to reside alone | 19% | 28% | 17% |
| Easier to get authorized for a mortgage | 46% | 51% | 45% |
Two gives is typical for recent consumers — staying up from earlier years
As within the final two years, the everyday (median) purchaser this yr reported submitting two gives — up from the only supply that typical consumers persistently reported over the prior three years (2018 – 2020). Likewise, the share of consumers reporting just one supply remained related during the last three years (38% in 2023, much like 39% in 2022, 36% in 2021) after being increased within the prior three years (48% in 2020, 49% in 2019, and 52% in 2018).But the share that made two or extra gives stayed increased: Over half (54%) of consumers reported making two or extra gives — much like 56% in 2022, down from 59% in 2021 and up considerably from years previous (42% in 2020, 40% in 2019, and 38% in 2018). [9]
First-time consumers have been extra doubtless than repeat consumers to report that they made two or extra gives: About three in 5 (59%) made not less than two throughout their home shopping for course of — increased than about half (48%) of repeat consumers. The youthful age skew of first-time consumers (median: 35 years outdated) signifies that they are typically much less skilled with home shopping for, have fewer years to avoid wasting, and are usually unable to faucet fairness from a earlier home sale (besides in rarer circumstances the place they purchase a home via circumstances like inheritance or marriage).
Inspection, financing amongst commonest supply contingencies
About two thirds of consumers (67%) say their last supply was contingent on the property passing a home inspection. And three in 5 (61%) mentioned the identical about efficiently receiving financing (e.g. mortgage approval). Contingency on the property appraising at a minimal quantity was equally widespread (58%). A mortgage price buydown – the place the vendor agrees to purchase down the customer’s rate of interest – was the least widespread: About two in 5 consumers 40% mentioned they gained such a concession of their last supply.
Despite challenges and competitors, consumers maintain robust on inspections
Consistent with the previous three years, consumers surveyed in 2023 didn’t budge when it got here to forgoing inspections: About one in seven (14%) mentioned that they didn’t get any inspections prior to buying their home — insignificantly completely different from previous years (13% in 2022, 12% in 2021, 13% in 2020, 13% in 2019, and 11% in 2018).
Obtaining a pre-inspection report from the vendor can be fairly widespread: 65% of consumers say they acquired one, versus 30% who say they didn’t. The remaining 5% mentioned they don’t keep in mind. Younger consumers usually tend to report getting a pre-inspection report from the vendor: 76% of consumers ages 18-29 reported one, as did 74% of their 30s and 78% of their 40s. Buyers of their 50s (56%) and older (37%) have been much less prone to say they acquired such a report.
The Trials and Tribulations of Home Financing
Most consumers get pre-approved for a mortgage
Almost all mortgage consumers (96%) reported getting pre-approved for financing. Under half of money consumers (45%) additionally reported getting pre-approved, regardless of in the end shopping for their home free and clear.
Among consumers that acquired pre-approved, the commonest motive was to be able to make a proposal at a second’s discover (for 50% of pre-approved consumers). Knowing their funds (39%) and wanting a pre-approval to make a proposal on a home they discovered (37%) have been much less widespread causes.
Pre-approval commonest earlier than a personal tour, supply
Among consumers that acquired pre-approved, most reported getting their pre-approval earlier than making a proposal (67%) and taking their first non-public home tour (64%).
When it got here to hiring an agent, although, pre-approved consumers break up evenly: 52% acquired pre-approved after they employed their actual property agent, and 48% acquired pre-approved beforehand.
About a 3rd of mortgage consumers report getting denied financing
Consistent with earlier years, a couple of third of mortgage consumers (32%) say they have been denied financing not less than as soon as earlier than in the end getting authorized. For comparability, in response to Home Mortgage Disclosure Act (HMDA) information from 2022, solely 9% of mortgage candidates have been denied. One clarification for this divergence is {that a} lender could discourage an applicant from making use of within the first place, with out issuing an official denial. Among potential consumers who say they’ve communicated with a mortgage lender, 36% say not less than one has discouraged them from making use of. Prospective consumers of their 30s and 40s are about thrice as doubtless as these of their 50s and older to say {that a} lender discouraged them from making use of. Other hurdles that trigger consumers to over-report denials could embrace poor communication with a lender or challenges related to paperwork and documentation.
Mortgage denials are extra widespread for youthful and first-time consumers
Younger mortgage consumers are considerably extra prone to report being denied financing not less than as soon as, in contrast with their older counterparts. For instance, 40% of mortgage consumers below 30 years outdated reported not less than one mortgage denial, whereas solely 15% consumers of their fifties and 11% of consumers age 60 and older did. Thinking about this pattern by way of generations: About one in ten (12%) of Baby Boomer and Silent Generation mortgage debtors reported being denied financing — decrease than 22% of Gen X, 40% of Millennial and 41% of Gen Z mortgage consumers.
It is probably going that the youthful age skew of first-time consumers (sometimes age 35) contributes to increased chance of reporting not less than one mortgage denial. In this case, age is greater than only a quantity — it’s largely indicative of how lengthy somebody has needed to develop their financial savings, build their credit score, and probably repay pupil loans. In 2021, half (50%) of consumers with a mortgage mentioned saving up sufficient for a down cost influenced their resolution to maneuver. And this yr, three quarters (75%) of mortgage consumers mentioned they financed not less than a part of their down cost with money they’d saved up over time. Given this dependence on financial savings, extra time to avoid wasting can typically translate to a extra ironclad mortgage utility.
LGBTQ+ consumers extra prone to report a mortgage denial
LGBTQ+ mortgage consumers have been extra prone to report being denied financing not less than as soon as: 41% reported not less than one denial, versus 31% for cisgender heterosexual mortgage consumers. Age partially explains this pattern: the median LGBTQ+ purchaser is 33 years outdated – eight years youthful than the median cisgender heterosexual purchaser (41). Other analysis has additionally discovered that LGBTQ+ consumers usually tend to buy a townhouse, duxplex, triplex, or condominium – all of which may have increased rates of interest than a single indifferent home. [10]
Half of mortgage consumers put down lower than 20%
About half (48%) of mortgage consumers reported placing down lower than 20% on the home they bought – with the median mortgage purchaser placing down 20% of the ultimate buy value.
| Percent that Mortgage Buyers Report Putting Down | 2021 | 2022 | 2023 |
| Less than 3% | 10% | 12% | 8% |
| 3% to five% | 12% | 16% | 14% |
| 6% to 9% | 14% | 9% | 8% |
| 10% to 19% | 25% | 21% | 18% |
| 20% | 21% | 20% | 23% |
| Between 21% and 99% | 18% | 21% | 29% |
Most mortgage consumers faucet financial savings to finance their down cost
Buyers surveyed in 2023 have been extra prone to report tapping two or extra distinct sources to finance their down cost (57% in 2023, versus 42% in 2022). This yr additionally marks the best share of mortgage consumers that report saving up not less than a part of their down cost over time (75%, increased than the earlier 70% peak in 2018).
| Sources Mortgage Buyers Used to Finance their Down Payment | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
| Saved it up over time | 70% | 66% | 67% | 67% | 63% | 75% |
| From the sale of my earlier home | 39% | 37% | 44% | 59% | 46% | 46% |
| Gift(s) from household and/or buddies | 30% | 26% | 34% | 35% | 27% | 39% |
| Loan(s) from household and/or buddies | 26% | 24% | 30% | 33% | 23% | 33% |
| I used my retirement fund | 27% | 24% | 29% | 35% | 23% | 32% |
| Sold shares or different investments | 26% | 24% | 31% | 38% | 27% | 35% |
| Other | 12% | 14% | 13% | 28% | 22% | 23% |
| NET: Gift/mortgage from household/buddies | 37% | 34% | 40% | 42% | 30% | 43% |
| Used 2 or extra sources | 46% | 43% | 47% | 57% | 42% | 57% |
Higher charges, which incentivize placing extra money down, in addition to a better share of first-time consumers, who’re much less prone to faucet proceeds from a earlier home sale, could assist clarify the shift in the direction of extra financial savings and distinct down cost funding sources.
| Sources Mortgage Buyers Used to Finance their Down Payment | Total | First-Time Buyer | Repeat Buyer |
| Saved it up over time | 75% | 86% | 65% |
| From the sale of my earlier home | 46% | 32% | 60% |
| Gift(s) from household and/or buddies | 39% | 43% | 35% |
| Loan(s) from household and/or buddies | 33% | 38% | 28% |
| I used my retirement fund | 32% | 35% | 29% |
| Sold shares or different investments | 35% | 40% | 30% |
| Other | 23% | 28% | 18% |
| NET: Gift/mortgage from household/buddies | 43% | 49% | 38% |
| Used 2 or extra sources | 57% | 60% | 55% |
| Average variety of sources (out of seven given) | 2.83 | 3.03 | 2.64 |
Among those who finance with a mortgage, first-time consumers usually tend to save up not less than a few of their down cost over time (86% of first-timers, versus 65% for repeat consumers). First-timers are additionally extra prone to make the most of a present or mortgage from buddies or household (49% versus 38%), and promote shares or different investments (40% versus 30%). Out of the seven sources we requested about, the common first-time purchaser reported tapping about 3.0, versus 2.6 for repeat consumers.
Most consumers use an actual property web site, app or agent to have a look at financing choices
About two thirds of mortgage consumers (66%) reported utilizing an actual property web site or app when financing choices. Two thirds additionally mentioned they used a referral from an actual property agent, realtor, or dealer (66%) when choices. Other widespread assets included a search engine (58%), the customer’s present monetary establishment (55%), a monetary web site or app (49%), and a monetary establishment aside from their present one (48%).
| Resources consumers used when financing choices | Total | Mortgage Buyers | Pre-Approved Buyers |
| Real property web site / app (e.g. Zillow, RE/MAX, Realtor.com) | 62% | 66% | 69% |
| Referral from actual property agent, realtor, or dealer | 59% | 66% | 69% |
| Search engine (e.g. Google, Bing) | 55% | 58% | 63% |
| My present monetary establishment (on-line / in-person) | 51% | 55% | 59% |
| Financial web site / app (e.g. LendingTree, Quicken Loans, Bankrate.com) | 42% | 49% | 52% |
| Another monetary establishment (on-line / in-person) | 41% | 48% | 49% |
| Referral from good friend, relative, neighbor or colleague | 45% | 47% | 51% |
| Social networking web site / app (e.g. Facebook, NextDoor, Twitter, Instagram) | 37% | 38% | 44% |
| Direct mail (e.g. publication, flyer, postcard) | 25% | 25% | 30% |
| Newspaper advert | 22% | 22% | 27% |
First-time consumers have been usually extra prone to report utilizing any given useful resource when financing choices. For instance, bigger shares of first-time consumers reported utilizing an actual property web site (70%) or referral from an actual property agent (65%) than repeat consumers (55% and 53% respectively).
| Resources consumers used when financing choices | Total | First-time purchaser | Repeat purchaser |
| Real property web site / app (e.g. Zillow, RE/MAX, Realtor.com) | 62% | 70% | 55% |
| Referral from actual property agent, realtor, or dealer | 59% | 65% | 53% |
| Search engine (e.g. Google, Bing) | 55% | 66% | 47% |
| My present monetary establishment (on-line / in-person) | 51% | 57% | 46% |
| Financial web site / app (e.g. LendingTree, Quicken Loans, Bankrate.com) | 42% | 48% | 37% |
| Another monetary establishment (on-line / in-person) | 41% | 44% | 38% |
| Referral from good friend, relative, neighbor or colleague | 45% | 53% | 39% |
| Social networking web site / app (e.g. Facebook, NextDoor, Twitter, Instagram) | 37% | 43% | 32% |
| Direct mail (e.g. publication, flyer, postcard) | 25% | 30% | 20% |
| Newspaper advert | 22% | 27% | 18% |
Agent referrals are the commonest manner consumers discover their lender
About one in 5 consumers that finance with a mortgage mentioned they first discovered the lender they used from a referral from an actual property agent, realtor, or dealer (19%). A barely smaller share say they first discovered them from an actual property web site or app (16%), and one in ten (10%) say a referral from a good friend, relative, neighbor, or colleague.
First-time consumers usually tend to discover their lender from an actual property web site or app (20%) in comparison with repeat consumers (12%). Repeat consumers are unsurprisingly extra prone to reference previous expertise with their lender (12%).
| Where first heard about monetary supplier | Mortgage Buyers | Pre- authorized | First- Time | Repeat |
| Referral from actual property agent, realtor, or dealer | 19% | 19% | 17% | 21% |
| Real property web site / app (e.g. Zillow, RE/MAX, Realtor.com) | 16% | 17% | 20% | 12% |
| Referral from good friend, relative, neighbor or colleague | 10% | 9% | 10% | 10% |
| My present monetary establishment (on-line / in-person) | 9% | 9% | 9% | 9% |
| Past expertise with this supplier | 9% | 9% | 5% | 12% |
| Financial web site / app (e.g. LendingTree, Quicken Loans, Bankrate.com) | 7% | 8% | 6% | 8% |
| Search engine (e.g. Google, Bing) | 5% | 5% | 8% | 3% |
| Social networking web site / app (e.g. Facebook, NextDoor, Twitter, Instagram) | 4% | 4% | 5% | 4% |
| Saw contact info on For Sale/Open House signal | 4% | 4% | 4% | 4% |
| Know them from my group | 4% | 3% | 4% | 3% |
| Another monetary establishment (on-line / in-person) | 2% | 2% | 2% | 2% |
| Direct mail (e.g. publication, flyer, postcard) | 2% | 2% | 1% | 2% |
| None of those | 2% | 1% | 1% | 2% |
| TV/Radio Ad | 2% | 2% | 1% | 2% |
| Attended an open home and met supplier | 1% | 1% | 2% | 1% |
| Newspaper advert | 1% | 1% | 1% | 1% |
| Other | 4% | 3% | 3% | 4% |
Most consumers contact not less than two lenders earlier than selecting
The typical purchaser contacts 2 lenders earlier than selecting the one which financed their home buy. About two in 5 money consumers (42%) additionally report contacting not less than one lender earlier than in the end buying their home with out a mortgage.
| Among consumers that contacted a lender | Total | First-Time Buyer | Repeat Buyer | Mortgaged | Pre-approved |
| 1 lender contacted | 37% | 32% | 42% | 38% | 36% |
| 2 lenders contacted | 31% | 32% | 30% | 31% | 32% |
| 3 lenders contacted | 21% | 24% | 17% | 21% | 21% |
| 4 lenders contacted | 8% | 8% | 8% | 8% | 9% |
| 5 or extra | 3% | 4% | 3% | 2% | 3% |
When selecting a lender, most mortgage consumers rank the bottom price amongst high standards
About three in 5 (58%) consumers that financed with a mortgage ranked “lender offers the lowest rate” amongst their high two most essential issues when selecting a lender. Closer to 2 in 5 (41%) mentioned the identical a couple of suggestion from their actual property agent.
Repeat consumers have been extra doubtless than first-timers to rank the bottom price amongst their high standards: 62% mentioned it topped their lists, versus 54% of first-time consumers.
| Mortgage consumers that ranked every amongst their high 2 most essential issues when selecting a lender | Total | First-Time | Repeat |
| Lender gives the bottom price | 58% | 54% | 62% |
| Recommended by my actual property agent, realtor, or dealer | 41% | 43% | 40% |
| Guarantee that they may shut on time | 38% | 37% | 40% |
| Lender is a immediate communicator | 38% | 38% | 38% |
| Recommended by a good friend or member of the family | 25% | 30% | 21% |
Resources Buyers Use When Shopping & Searching
Online home buying is the norm; cellular buying is up
Almost all consumers (95%) used not less than one on-line buying useful resource (web site, cellular, app) when on the lookout for a home to purchase.
Since 2020, majorities of consumers have used a web site on a pc, a cellular web site, and a cellular app to seek for a home. Rates at which consumers report utilizing every have solely grown since then.
| Online assets used when looking | 2019 | 2020 | 2021 | 2022 | 2023 |
| Website on a laptop computer / desktop laptop | 73% | 76% | 82% | 80% | 82% |
| Mobile web site on a smartphone / pill | 60% | 64% | 74% | 75% | 84% |
| App on a smartphone / pill | 51% | 55% | 68% | 68% | 77% |
Half of consumers say their agent was their most useful useful resource
About half (49%) of consumers (and 55% of consumers that used an agent) say that their agent was probably the most useful useful resource of their home shopping for expertise. About a 3rd (35%) mentioned an actual property app or web site was their most useful useful resource (21% a couple of cellular website or app and 15% a couple of web site on a laptop computer or desktop laptop). About one in six (16%) mentioned recommendation from household or buddies was their most useful useful resource.
Greatest share of mortgage consumers cite agent as financing buying useful resource
| Resource | 2019 | 2020 | 2021 | 2022 | 2023 |
| Real property web site / app (e.g. Zillow, RE/MAX, Realtor.com) | 33% | 36% | 40% | 49% | 66% |
| Search engine (e.g. Google, Bing) | 36% | 37% | 41% | 37% | 58% |
| Financial web site / app (e.g. LendingTree, Quicken Loans, Bankrate.com) | 31% | 35% | 38% | 32% | 49% |
| Social networking web site / app (e.g. Facebook, NextDoor, Twitter, Instagram) | – | – | 31% | 26% | 38% |
| My present monetary establishment | 46% | 50% | 54% | 42% | 55% |
| Another monetary establishment | 36% | 39% | 38% | 40% | 48% |
| Referral from actual property agent or dealer | 49% | 52% | 57% | 54% | 66% |
| Referral from good friend, relative, neighbor or colleague | 33% | 40% | 41% | 41% | 47% |
| Newspaper advert | 18% | 22% | 20% | 16% | 22% |
| Direct mail (e.g. publication, flyer, postcard) | 18% | 23% | 25% | 17% | 25% |
A fifth of mortgage consumers first discovered their lender from an agent
| Resource | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
| Referral from an actual property agent, realtor, or dealer | 24% | 23% | 23% | 23% | 25% | 19% |
| Referral from good friend, relative, neighbor or colleague | 11% | 13% | 12% | 9% | 10% | 10% |
| Net: Referral | 35% | 36% | 35% | 32% | 34% | 29% |
| Real property web site / app (e.g. Zillow, Realtor.com, Redfin) | 6% | 6% | 8% | 8% | 10% | 16% |
| Financial web site / app (e.g. LendingTree, Quicken Loans) | 6% | 2% | 5% | 5% | 4% | 7% |
| Search engine (e.g. Google, Bing) | 5% | 6% | 5% | 6% | 6% | 5% |
| Social networking web site / app (e.g. Facebook, NextDoor, Twitter, Instagram) | 3% | 3% | 4% | 5% | 3% | 4% |
| Net: Online | 20% | 17% | 22% | 24% | 23% | 33% |
| Past expertise with this supplier | 17% | 16% | 14% | 17% | 10% | 9% |
| My present monetary establishment | – | – | – | – | 8% | 9% |
| Another monetary establishment | – | – | – | – | 1% | 2% |
| Know them from my group | 7% | 7% | 5% | 5% | 5% | 4% |
| Saw contact info on For Sale/open home signal | 3% | 3% | 4% | 4% | 2% | 4% |
| Direct mail (e.g. publication, flier, postcard) | 2% | 3% | 3% | 1% | 1% | 2% |
| TV/radio | – | – | 2% | 3% | 1% | 2% |
| Attended an open home and met supplier | 3% | 4% | 3% | 4% | 3% | 1% |
| Newspaper advert | 2% | 3% | 3% | 1% | 0% | 1% |
| Other | 6% | 6% | 5% | 5% | 7% | 4% |
Importance of Virtual Home Tours & (Digital) Floor Plans
Buyer want for (digital) ground plans stays excessive
| Share that agree considerably/fully with every assertion | 2020 | 2021 | 2022 | 2023 |
| I wasted time throughout my home search viewing properties that I might have skipped if I had understood their ground plan earlier than my go to | 54% | 56% | 50% | 52% |
| I’m extra prone to view a home if the itemizing features a ground plan that I like | 79% | 81% | 80% | 82% |
| The solely solution to actually perceive the structure of a home is to see it in individual | 76% | 78% | 76% | 81% |
| A dynamic ground plan that reveals what a part of the home every photograph depicts would assist me decide if the home is correct for me | 71% | 74% | 69% | 76% |
Virtual/3D tour demand stays excessive, rising
Buyers surveyed in 2023 remained prone to agree considerably or fully with most statements on their desire for 3D and digital excursions. The exception was the assertion “I prefer 3D tours over in-person viewings”, the place consumers break up pretty evenly: 40% agreed, 41% disagreed and 19% mentioned they neither agree nor disagree.
| Share of consumers that agree considerably/fully with every assertion | 2019 | 2020 | 2021 | 2022 | 2023 |
| 3D excursions would assist me get a greater really feel for the house than static images | 52% | 62% | 68% | 66% | 72% |
| I want extra listings had 3D excursions accessible | 46% | 55% | 61% | 61% | 67% |
| I favor 3D excursions over in-person viewings | 26% | 35% | 38% | 32% | 40% |
| I favor to schedule in-person excursions on-line | – | 57% | 61% | 62% | 66% |
| It can be simpler for me to unlock properties with my telephone and tour them in-person alone time | – | 59% | 63% | 64% | 68% |
Buyers of their 30s and 40s have been the most certainly to agree that they like 3D over in-person excursions: 52% of consumers of their 30s and 60% of these of their 40s agreed not less than considerably. These age teams have been additionally extra prone to agree with different statements, like wishing that extra listings had 3D excursions accessible (78% and 75%) and preferring to schedule in-person excursions on-line (77% and 81%).
| Share of consumers that agree considerably/fully with every assertion | 18-29 | 30s | 40s | 50s | 60+ |
| 3D excursions would assist me get a greater really feel for the house than static images | 72% | 68% | 79% | 80% | 65% |
| I want extra listings had 3D excursions accessible | 67% | 63% | 78% | 75% | 56% |
| I favor 3D excursions over in-person viewings | 40% | 43% | 52% | 60% | 23% |
| I favor to schedule in-person excursions on-line | 66% | 66% | 77% | 81% | 57% |
| It can be simpler for me to unlock properties with my telephone and tour them in-person alone time | 68% | 64% | 72% | 78% | 71% |
Confidence making a proposal with out an in-person viewing creeps up
About three in 5 (61%) of consumers mentioned they might be not less than considerably assured making a proposal on a home after seeing a 360/digital tour, however not an in-person viewing. This discovering is much like its earlier peak (58%) in 2021. The share that claims they might be very or extraordinarily assured crept upward — 32% in 2020, 34% in 2021, 31% in 2022, and 37% in 2023.
| Buyer confidence making a proposal on a home the place they noticed a 360/digital tour, however didn’t view the home in individual | 2020 | 2021 | 2022 | 2023 |
| Very/Extremely Confident | 32% | 34% | 31% | 37% |
| Somewhat Confident | 23% | 25% | 23% | 24% |
| Not in any respect/Not very Confident | 45% | 42% | 46% | 39% |
Almost two in 5 consumers (37%) say that they made not less than one supply on a home earlier than viewing the home in individual. For most of those sight-unseen gives, although, a good friend/colleague (12%), relative (27%), actual property agent (30%), or partner/accomplice (52%) considered the home earlier than making the supply. All in all, solely 4% of consumers made a proposal with none of the above viewing the home in-person first.
Almost all consumers took a personal tour, most attend not less than one open home
The typical purchaser goes on 2 non-public home excursions, takes 1 digital tour, and attends 1 open home. Only one in ten (11%) forgo non-public excursions totally. Among consumers that forgo non-public excursions, 22% report attending not less than one open home and 29% report taking not less than one digital tour.
| Share of Buyers that Reported Taking | 2023 |
| 0 Virtual Tours | 33% |
| 1-4 Virtual Tours | 58% |
| 5 or More Virtual Tours | 9% |
| Median variety of digital excursions | 1 |
About a 3rd of consumers (34%) attended zero open homes and fewer than one in ten (8%) attended 5 or extra. Across 2018-2022, the median variety of open homes remained just one.
| Share of Buyers that Reported Attending | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
| 0 Open Houses | 45% | 41% | 35% | 34% | 47% | 34% |
| 1-4 Open Houses | 44% | 43% | 48% | 56% | 44% | 58% |
| 5 or More Open Houses | 12% | 15% | 17% | 10% | 9% | 8% |
| Median variety of open homes | 1 | 1 | 1 | 1 | 1 | 1 |
Most consumers use not less than one digital home buying device, extra wish to
The commonest digital home buying device that consumers report utilizing is signing paperwork on-line/digitally: 53% mentioned they signed paperwork digitally, however 55% mentioned they might ideally signal this fashion. Overall, 89% of consumers reported utilizing not less than one digital device, however 92% mentioned they might ideally use not less than one.
The largest divide between consumers’ best and actuality was unlocking properties with their telephone and touring them in individual on their very own time: 29% mentioned they toured this fashion, however 44% mentioned they wish to – a 15 level divide.
| Used | Would ideally use | |
| Real property agent gave me a video tour | 42% | 45% |
| 3D interactive digital tour | 37% | 45% |
| Sign paperwork on-line/digitally | 53% | 55% |
| Use distant or cellular notary choices to finish closing | 33% | 41% |
| Unlock properties with my telephone and tour them in-person alone time | 29% | 44% |
| At least one | 89% | 92% |
The Buyer-Agent Partnership
Almost all consumers use an agent
Most consumers reported utilizing an agent among the many assets they used to buy, search, or buy their home (88%). Among consumers that used an agent, 74% say they employed their agent to assist store for and buy their home. About 1 / 4 (26%) employed an agent to finalize their home buy, however shopped on their very own.
| Resource used throughout any a part of looking, searching for or buying their home | 2019 | 2020 | 2021 | 2022 | 2023 |
| Real property agent, dealer or realtor | 82% | 85% | 82% | 89% | 88% |
Almost half of consumers with an agent employed the primary one they contacted
Among consumers that contacted an agent, almost half (47%) contacted just one earlier than in the end hiring them. Conversely, 53% contacted not less than 2 brokers earlier than deciding which to rent.
First-time consumers, who’re much less prone to have earlier expertise with an agent, usually tend to contact a number of: 60% of first-timers reported contacting 2 or extra brokers, versus solely 46% of repeat consumers.
| Among consumers that contacted not less than 1 agent | Total | First- Time | Repeat |
| 1 actual property agent contacted/
Hired the primary agent they contacted |
47% | 40% | 54% |
| 2 actual property brokers contacted | 25% | 25% | 25% |
| 3 actual property brokers contacted | 15% | 18% | 12% |
| 4 actual property brokers contacted | 8% | 11% | 5% |
| 5 or extra actual property brokers contacted | 5% | 6% | 5% |
| NET: Contacted 2+ brokers | 53% | 60% | 46% |
Buyers rank supply particulars, paperwork amongst Most worthy agent providers
Buyers who labored with an agent have been most certainly to rank assist deciding the main points of their supply(s) (57%) and organizing and submitting paperwork (53%) amongst their high three Most worthy agent providers. Repeat consumers usually thought of these high two providers equally essential (each 57%) whereas first-time consumers have been extra prone to think about serving to deciding on supply particulars amongst their high 3 (56% versus 49% for organizing and submitting paperwork).
First-time consumers have been additionally extra prone to think about an agent’s referral to a mortgage lender amongst their high 3 Most worthy providers (39%) than repeat consumers (28%).
| Ranked amongst high 3 Most worthy agent providers | Total | First-time purchaser | Repeat purchaser |
| Helped me determine the main points of my supply(s) | 57% | 56% | 57% |
| Organized and submitted paperwork | 53% | 49% | 57% |
| Identified houses to think about | 43% | 44% | 43% |
| Took me on non-public home excursions | 43% | 41% | 44% |
| Led contract negotiations | 43% | 37% | 47% |
| Referred me to a mortgage lender | 34% | 39% | 28% |
| Referred me to an inspector | 29% | 33% | 24% |
Trust, responsiveness high extremely essential agent traits
Consistent with earlier years, the highest attribute that consumers with an agent are most certainly to think about extremely essential is a reliable preliminary impression (83%) – much like 81% a couple of responsive preliminary impression.
Since 2018, excessive significance of on-line opinions and rankings has seen probably the most progress. In 2018, 42% of consumers thought of such opinions extremely essential. By 2023, that quantity had grown 21 factors to 63%.
| Among consumers that used an agent, p.c that thought of every agent attribute very or extraordinarily essential | 2018 | 2020 | 2021 | 2022 | 2023 |
| Initial impression of agent or dealer: reliable | 81% | 79% | 75% | 83% | 83% |
| Initial impression of agent or dealer: responsive | 80% | 75% | 73% | 81% | 81% |
| Had native market and/or neighborhood-specific data | 75% | 73% | 72% | 76% | 77% |
| Had robust negotiation abilities and/or technique to win a proposal | 69% | 68% | 72% | 73% | 77% |
| Positive common repute locally | 66% | 67% | 69% | 69% | 74% |
| Referral from good friend, relative, neighbor or colleague | 53% | 54% | 65% | 58% | 61% |
| Strong gross sales historical past / excessive variety of recent gross sales | 49% | 54% | 67% | 58% | 64% |
| Online opinions and rankings of the agent or dealer | 42% | 53% | 63% | 54% | 63% |
| Was a part of a recognizable brokerage (e.g. RE/MAX, Coldwell Banker, Century21) | 44% | 48% | 57% | 42% | 54% |
| Past private expertise with the agent or dealer | 44% | 48% | 61% | 51% | 55% |
| Charged a decrease fee or supplied a rebate | 39% | 48% | 62% | 52% | 57% |
Almost 1 / 4 of consumers say they broke up with their agent
Among consumers that labored with an agent, about one in 4 (26%) say that they stopped working with one agent and began working with one other throughout the homebuying course of.
Buyers that employed an agent to assist store and buy a home have been almost twice as prone to say that they stopped working with their first agent than those who merely employed an agent to finalize the acquisition, however shopped on their very own: 28% of consumers that employed a full-service agent to assist them store say they broke up with one, versus 15% of consumers who shopped on their very own.
Agent-changing consumers most certainly to say agent didn’t do very a lot work
Among consumers that stopped working with one agent and employed one other, about half (48%) cite the agent not doing very a lot work as a motive. Two in 5 (40%) cited their agent being tough to speak with, and a couple of quarter (25%) mentioned the agent didn’t observe their directions.
Most say they need to discover a new agent on an actual property web site
For consumers that caught with the identical agent via the complete course of, about half (54%) say they might use an actual property web site like Zillow, Redfin or Realtor.com in the event that they have been to discover a new agent. A smaller share (44%) mentioned they might ask their buddies, household, neighbors or colleagues for a referral, and 41% mentioned they might contact an actual property brokerage agency.
| Among consumers that stayed with their agent, share that say they might use every useful resource to discover a new agent | Total | First- Time | Repeat |
| Real property web site (e.g. Zillow, Redfin, Realtor.com, and so on) | 54% | 56% | 52% |
| Ask my buddies, household, neighbors or colleagues for a referral | 44% | 44% | 43% |
| Contact an actual property brokerage agency (e.g. RE/MAX, Coldwell Banker, and so on) | 41% | 41% | 41% |
| Contact an agent I’ve labored with beforehand | 31% | 24% | 37% |
| Social media web site (e.g. Facebook, Instagram, Twitter, Tiktok) | 27% | 32% | 22% |
| Find a brand new agent at an open home | 15% | 17% | 13% |
What Buyers Want in a Home
Budget, air-con high amongst extremely essential home traits
The largest shares of consumers say {that a} home being inside their preliminary funds (84%) and having air-con (84%) are very or extraordinarily essential.
| Share of Buyers that Consider Each Home Characteristic Very or Extremely Important | 2018 | 2019 | 2020 | 2021 | 2022 (Winter) | 2023 |
| Was inside my preliminary funds | 83% | 83% | 82% | 84% | 81% | 84% |
| Had air-con | 76% | 78% | 79% | 84% | 79% | 84% |
| Had most well-liked variety of bedrooms | 78% | 76% | 77% | 78% | – | 78% |
| Had ample storage | 64% | 64% | 68% | 75% | 71% | 71% |
| Had most well-liked variety of loos | 70% | 67% | 72% | 74% | – | 73% |
| Had a ground plan / structure that match my preferences | 68% | 67% | 72% | 73% | – | 72% |
| Offered off-street parking or a storage | 70% | 64% | 68% | 73% | – | 71% |
| Had non-public out of doors house (e.g. patio, deck, yard) | 70% | 67% | 72% | 71% | 68% | 73% |
| Good potential to extend in worth | 67% | 64% | 67% | 71% | 74% | 73% |
| Preferred dimension / sq. footage | 69% | 67% | 69% | 70% | – | 73% |
| Had an en-suite or grasp lavatory | 62% | 60% | 64% | 69% | – | 69% |
| Was vitality environment friendly | 56% | 56% | 62% | 67% | 63% | 64% |
| Had a spare or visitor bed room | 60% | 59% | 63% | 66% | – | 68% |
| Preferred utilities (e.g. fuel, electrical) | 61% | 62% | 67% | 66% | – | 68% |
| Had my most well-liked model of kitchen | 58% | 57% | 63% | 63% | – | 64% |
| Offered me my very own assigned parking place | – | 58% | 62% | 62% | – | 64% |
| Had my most well-liked finishes (e.g. flooring, counter tops, home equipment) | 53% | 52% | 58% | 58% | – | 59% |
| Had “smart home” capabilities (e.g. with lighting, heating, and digital gadgets that may be managed remotely by smartphone or laptop) | 27% | 27% | 35% | 40% | 40% | 42% |
| Offered shared group facilities (e.g. clubhouse, health heart, playground) | 29% | 31% | 37% | 37% | 34% | 43% |
| Had a scorching tub or pool | 24% | 25% | 30% | 35% | 36% | 40% |
| Opportunity to hire out total home sooner or later to provide rental revenue | 27% | 28% | 33% | 34% | – | 43% |
| Opportunity to hire out a portion of the home for rental revenue whereas residing within the home | 24% | 24% | 31% | 31% | – | 39% |
Winter temperatures could calm down excessive significance of air-con
While air-con is persistently among the many home traits consumers are most certainly to think about extremely essential, we discovered that asking consumers about it in colder months yields barely decrease outcomes than surveying in spring and summer time. When surveyed in November 2022, 79% of consumers mentioned air-con was not less than crucial, however when requested in March – August 2021 and March – July 2023, 84% of consumers mentioned the identical.
Young consumers drive more and more excessive significance of rental revenue
In 2023, excessive significance of the chance to hire out the complete home sooner or later to provide rental revenue (43%) and alternative to hire out a portion of the home for rental revenue whereas residing within the home (39%) noticed the most important will increase: 9 and eight factors respectively. This shift is probably going attributed to youthful generations getting older into their peak homebuying years: Gen Z and Millennial consumers have usually been extra prone to think about the chance to earn rental revenue as extremely essential. In 2023, majorities of Gen Z and Millennial consumers mentioned that the chance to hire out the complete home (54% of Gen Z and 59% of Millennial consumers) and a part of the home (51% of Gen Z and 51% of Millennial consumers) was extremely essential – in comparison with smaller shares amongst older generations.
| Consider every very or extraordinarily essential | Total | Gen Z (Ages 18-28) | Millennial (Ages 29-43) | Gen X (Ages 44-58) | Boomers + Silent Gen (59+) |
| Opportunity to hire out a portion of the home for rental revenue whereas residing within the home | 39% | 51% | 55% | 36% | 4% |
| Opportunity to hire out total home sooner or later to provide rental revenue | 43% | 54% | 59% | 40% | 8% |
| Consider every very or extraordinarily essential | Total | 18-29 | 30-39 | 40-49 | 50-59 | 60+ |
| Opportunity to hire out a portion of the home for rental revenue whereas residing within the home | 39% | 51% | 54% | 59% | 21% | 4% |
| Opportunity to hire out total home sooner or later to provide rental revenue | 43% | 51% | 61% | 61% | 23% | 9% |
Walkability amongst high extremely essential neighborhood traits
About two thirds of consumers (67%) say a home in a walkable neighborhood could be very or extraordinarily essential. Proximity to buying, providers and/or leisure actions follows (60%).
Despite being the bottom among the many traits we ask about, excessive significance of proximity to public transportation has seen the most important improve – rising 13 factors from 30% in 2018 to 43% in 2023. Most different traits like proximity to family and friends (up 10 share factors), neighborhood walkability (up 9 share factors), a way of group or belonging (up 9 share factors), and proximity to buying, providers and/or leisure actions (up 6 factors) have seen will increase since 2018 as effectively.
| Share of Buyers that Consider every Neighborhood Characteristic Very or Extremely Important | 2018 | 2019 | 2020 | 2021 | 2023 |
| In a walkable neighborhood | 58% | 60% | 66% | 64% | 67% |
| Close to buying, providers, and/or leisure actions | 54% | 53% | 58% | 56% | 60% |
| Close to household and/or buddies | 47% | 46% | 50% | 50% | 57% |
| Offered a way of group or belonging | 47% | 48% | 51% | 54% | 56% |
| My commute to work or college | 54% | 52% | 53% | 51% | 53% |
| Close to public transportation | 30% | 30% | 36% | 36% | 43% |
Pets more and more widespread in purchaser households
Most consumers (78%) say that not less than one pet lives of their home with them – a rise from the pandemic pet boom measured in 2021 (73%). About two thirds of consumers (68%) have a canine. Half (47%) have a cat, and one in seven (14%) have one other type of pet.
| Share of Buyers that share their home with every type of pet | 2018 | 2019 | 2020 | 2021 | 2023 |
| Dog(s) in home | 49% | 48% | 49% | 57% | 68% |
| Cat(s) in home | 33% | 33% | 33% | 39% | 47% |
| Another type of pet(s) in home | 12% | 12% | 12% | 15% | 14% |
| Net: At least one pet in home | 64% | 63% | 64% | 73% | 78% |
Humans have the money, pets select the home
Most consumers with pets mentioned that their pet(s) influenced their homebuying choices considerably (37%) or rather a lot (43%). Only one in 5 (20%) consumers with pets mentioned that their pet(s) didn’t affect their homebuying resolution.
Most consumers mentioned that not less than one pet-friendly home characteristic was important in a home they might think about shopping for (73%) and the next share of pet-owning consumers (80%) mentioned the identical. About three in 5 consumers (58%) mentioned a fenced yard was important (63% for these with a pet). Buyers have been much less prone to think about a doghouse (24%) and walking distance to a canine park (26%) as important – however amongst canine house owners, these numbers grew to a couple of third (33% for each).
Pets wield extra affect over youthful consumers
Most consumers with pets say that their pet(s) influenced their homebuying choices not less than considerably (80%), however the pattern is extra excessive for youthful consumers: Pet-owning home consumers ages 18-29 (88%), of their 30s (84%), and 40s (87%) have been extra prone to report such affect from their pets than older age teams.
| Among consumers with pets, share that mentioned their pet(s) influenced their homebuying choices | Total | 18-29 | 30-39 | 40-49 | 50-59 | 60+ |
| No pet affect | 20% | 12% | 16% | 13% | 23% | 41% |
| Pets influenced rather a lot | 43% | 52% | 52% | 44% | 37% | 20% |
| Pets influenced considerably | 37% | 36% | 32% | 43% | 40% | 39% |
| NET: Any pet affect | 80% | 88% | 84% | 87% | 77% | 59% |
| Among consumers with pets, share that mentioned their pet(s) influenced their homebuying choices | Total | Gen Z (Ages 18-28) | Millennial (Ages 29-43) | Gen X (Ages 44-58) | Boomers + Silent Gen (59+) |
| No pet affect | 20% | 12% | 16% | 20% | 39% |
| Pets influenced rather a lot | 43% | 54% | 50% | 39% | 21% |
| Pets influenced considerably | 37% | 34% | 34% | 42% | 40% |
| NET: Any pet affect | 80% | 88% | 84% | 80% | 61% |
[1] Zillow Group Population Science defines Gen Z as these born between 1995 and 2003, Millennials between 1980 and 1994, Gen X between 1965 and 1979, Baby Boomers between 1945 and 1964, and Silent Generation in 1944 and earlier.
[2] LGBTQ+ consumers are those that recognized as homosexual, lesbian, bisexual, transgender, gender non-conforming/non-binary, intersex, or with one other sexual orientation (aside from straight) or gender id (e.g. gender fluid, gender queer, gender impartial).
[3] Median family incomes are from U.S. Census Bureau, 2022 Current Population Survey Annual Social and Economic Supplement.
[4] These estimates come from CHTR 2023 and the 2019 American Community Survey.
[5] The estimated share of all households with pets comes from American Housing Survey (AHS) 2021. These numbers are doubtless systematically low due to rising pet possession following the COVID-19 pandemic. AHS additionally excludes service animals and livestock from their survey definition, whereas CHTR doesn’t specify exclusions for any animals/pets. Tenured house owner family pet estimates come from CHTR 2021 (the final yr CHTR included tenured owners) whereas purchaser estimates are from CHTR 2023.
[6] The estimated shares of households (purchaser, tenured house owner, and all households) with youngsters comes from the 2022 Current Population Survey Annual Social and Economic Supplement.
[7] This survey defines “cobuying” as sharing possession of the home with not less than one different individual. While greater than 71% of married/partnered consumers doubtless reside with or contain their partner or accomplice of their home buy, 71% is the share who self-report sharing possession of the home with their partner/accomplice.
[8] ZG Population Science, 2022 Cobuying Survey information was collected between February and April 2022.
[9] About one in fourteen (7%) consumers made zero gives. These consumers usually tend to buy cellular or manufactured houses, transact with out an agent, and think about the realm the place they bought as rural.
[10] Across 29 metropolitan areas, LGBTQ+ owners have been extra prone to personal a townhouse, duplex, triplex, or condominium (32% of LGBTQ+ owners versus 18% of cisgender heterosexual owners).
