Rural, Urban or Suburban: Who Wants to Buy More?

Despite talk of the rural-urban divide, Americans seem to share the same sentiments about homeownership regardless of their location. According to new data released by ValueInsured on Thursday, nearly the same amount of residents in rural, suburban, and urban areas said that buying a home is more financially beneficial than renting, and around the same amount said homeownership is an important part of their American Dream.

According to ValueInsured, 78 percent of Americans living in rural areas believe buying a home is more beneficial than renting. Suburban and urban residents came in at 79 percent and 83 percent, respectively. Seventy-six percent of rural and suburban Americans also said owning a home was a part of their American Dream, while 80 percent of urban residents shared the sentiment.

As for desire and intent to buy, 81 percent of urban non-homeowners said they would like to purchase a home, and 74 percent said they would do so right now if they could afford it. Suburban residents had largely the same response, with 80 percent saying they want to buy and 77 percent saying they would do so now if it were affordable. Rural non-homeowners came in at 97 percent and 81 percent on the same sentiments, respectively.

The three groups only diverge on homeownership topics when it comes to length of stay. While 71 percent of suburban and rural Americans plan to stay in the next home they buy for seven years or more, only 35 percent of urban homebuyers say the same. According to ValueInsured, this “transient nature” is likely due to the younger average age of urban residents, compared to those in more suburban and rural areas.

According to ValueInsured’s report, "Not surprisingly, the more transient nature of urban homeownership is correlated with the younger average age of our urban respondents, at 38.4 years old, compared to our average rural respondent, who is 47.6 years old. This also correlates with twice as many urban respondents who describe the next home they plan to buy as a ‘starter home.’”

Jobs may also play a role in the urban buyer’s less-than-long-term plans.

“Urban homebuyers’ plan to move more frequently is also likely related to their shorter job tenure and more mobile job locations,” ValueInsured reported. “Seventy percent of urban homebuyers say the possibility of a job change or job loss makes them worry about the risk of buying a home, while only 30 percent of rural and 42 percent of suburban respondents say the same.”

According to ValueInsured, urban buyers are also more likely to rely on their family members financially to purchase a home than rural and suburban ones are.

View ValueInsured’s full analysis at ValueInsured.com.