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Homebuying Sentiments Vary by Local Density

Urban, rural, and suburban American homebuyers have “drastically different” profiles, according to results of the latest Modern Homebuyer Survey released by ValueInsured on Thursday. Aside from agreeing on the importance of homeownership, the three groups vary greatly on most homebuying-related topics.

The biggest differences lie with the urban homebuyer, who ValueInsured said is “younger, more transient, more likely to be a new immigrant, and—not surprisingly, due to higher housing costs in urban areas—plan[s] to buy with a significantly higher budget.”

According to the survey, the average urban homebuyer is about 38 years old—nearly a full decade younger than the average suburban and rural buyer. About 18 percent self-identify as a recent immigrant, compared to the 3 percent of suburban and rural buyers who say the same.

Additionally, urban buyers are much more likely to buy a starter home than their suburban and rural counterparts. While 31 percent of urban buyers plan to purchase one, just 13 percent of rural buyers and 12 percent of suburban buyers do.

Budget is starkly different between homebuyer groups, too. Urban buyers have a median budget of $405,500 for a starter home, while rural and suburban buyers have budgets of $158,400 and $210,200, respectively.

But demos and budgets aren’t the only places where these buyers diverge, according to ValueInsured.

“Differences are in how residents from different areas of density view homebuying,” ValueInsured reported. “Urban homebuyers seem content with not looking for a ‘forever home,’ and instead see homebuying as serial investments. Suburban and most potently rural homebuyers appear less bullish about home buying as a good investment; they are also much more likely to be concerned with the prospect of another housing crisis.”

While 77 percent of urban buyers believe buying a home in their area is a good investment, only 66 percent of suburban buyers do. Rural homebuyers feel even less that their neighborhood offers good investment opportunities, at just 58 percent.

About 65 percent of urban homebuyers are also confident in the market, believing another housing crisis is not likely in their lifetime. Rural and suburban buyers, however, feel the chances are much higher; only 29 percent and 34 percent of these groups, respectively, have similar market confidence.

With these sentiments, it’s no surprise that most suburban buyers—71 percent—plan to stay in their homes at least seven years. Less than half of that number, or 35 percent, of urban buyers have plans to stay put that long.

View the full survey results at ValueInsured.com.

 

About Author: Aly J. Yale

Aly J. Yale is a longtime writer and editor from Texas. Her resume boasts positions with The Dallas Morning News, NBC, PBS, and various other regional and national publications. She has also worked with both the Five Star Institute and REO Red Book, as well as various other mortgage industry clients on content strategy, blogging, marketing, and more.
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