Price (56%) is more important than location (50%) to surveyed consumers when choosing a home, according to the latest nationwide survey from Coldwell Banker Real Estate, an AnywhereSM (NYSE: HOUS) brand. It also finds that women value price more than men – 60% to 48%, respectively. This bucks the real estate industry’s oldest advice, setting new stakes for this year’s market.
The data further reveal that the dream of home ownership is still alive and well: Of consumers who purchased a home last year, 31% did so because they found their dream home. Additionally, of homeowners who plan to sell their homes in the future, 66% say they plan to move to either a different city, state or country.
“While many consumers made their dream home purchase last year, the data show that some desire to seek new horizons,” said Jason Waugh, president of Coldwell Banker Affiliates. “For those still looking for their dream home – no matter their price range, whether nearby or afar – I encourage them to contact a real estate agent for local advice and context. The Coldwell Banker brand equips its global network of affiliated agents with tools and technology, including the Move Meter®, where consumers can compare where they live to anywhere else.”
Additional key points emerge from the data, in terms of market sentiment, social media, ideal home preferences and financial dynamics, revealing the dreams and desires shaping the U.S. real estate landscape.
Market Sentiment
A majority of consumers surveyed (56%) believe that the real estate landscape will either improve or remain the same in 2024 compared to the previous year. Additionally, the data indicates:
- Consumers who plan to sell their home in the future would be more likely to move to a different city after they sell their home now (39%) than in 2022 (19%).
Keeping up with the Joneses
43% of consumers surveyed have been somewhat influenced or highly influenced by social media in their desire to purchase a particular type of home. Compare this to the findings from luxury consumers, with 73% of them saying the same. Other social insights include:
- Social media significantly influences home preferences for 64% of consumers aged 18-24, compared to a mere 16% of those aged 55 and above.
- Consumers surveyed who have been influence by social media in their desire to purchase a particular type of home aged 18-24 are most likely to have been influenced by TikTok (68%) in their decision to purchase the preference in the type of home they desire, while consumers aged 55 and above are most likely to have been influenced by Facebook (54%).
This suggests a substantial role that platforms like TikTok, Instagram or other social media channels play in shaping homebuyers’ desires. This signals the need for a strong online presence and strategy.
Ideal Home Preferences
Across the nation, respondents each have their own version of the ideal home location, design and size, with no one-size-fits-all formula arising from the data.
- Almost a third of respondents (32%) said their ideal home is located in the South, while a quarter said it’s in the Northeast (24%).
- Almost half (49%) of consumers surveyed said their dream home size is mid-sized: 3-4 bedrooms and 2-3 bathrooms.
- While Ranch comes out on top (13%) for dream home design style with Modern Contemporary (11%) right behind, more respondents said they preferred “no style in particular” (16%).
Financial Dynamics Shift
Parental contributions to their children’s home purchases differ among generational and racial groups.
- Over a quarter (26%) of surveyed consumers have not provided or do not plan to provide financial support for their child(ren)’s first home.
- Younger respondents (aged 25-34) are more likely (49%) to consider providing such support compared to those aged 55 and above (23%).
- Black Americans (46%) and American Indian or Alaska Natives surveyed (49%) exhibit a higher willingness to financially support their children’s home purchases.
- 58% of consumers agree with the statement ‘I consider my home as an asset that I would pass along to my child(ren).’
Navigating the Future
As the industry adapts to diverse dynamics, real estate professionals become even more vital guides. The Coldwell Banker® brand stands as a steadfast partner in this journey, ready to navigate the currents of the real estate market. In a landscape shaped by optimism, generational differences and evolving preferences, real estate agents emerge as the backbone, providing expertise and guidance. The future of American real estate is dynamic to say the least, and Coldwell Banker Real Estate remains a constant, ensuring that dreamers find their dream home in an ever-evolving market.
Methodology
Coldwell Banker collaborated with Censuswide to provide insights into real estate trends, market sentiment, property investment and luxury spending preferences. Research was conducted between November 27, 2023 and December 11, 2023, among 4,213 U.S. consumers aged 18 and older. 25% of respondents (1,053 in total) were luxury respondents classified as those aged 18+ with a household income of $1M+, or who have bought a home in the U.S. worth $1M+ or are planning to purchase a home in the near future worth $1M+. Censuswide abides by and employs members of the Market Research Society which is based on ESOMAR guidelines and principles.
