BANK OF AMERICA
The inaugural Bank of America Homebuyer Insights Report is a study exploring the attitudes, behaviors and preferences of the modern homebuyer. The report reveals what homebuyers want in a home, their catalysts for making the home purchase and the unique preferences of first-time and millennial buyers.
This year’s report found first-time homebuyers are prioritizing their long-term residential needs, as 75 percent would prefer to bypass the starter home and purchase a place that will meet their future needs, even if that means waiting to save more, and 35 percent plan to retire there. Additionally, buyers who have a plan in place for purchasing a home are more willing to consider a starter home than “someday” buyers who know they want to buy a home in the future, but don’t have a plan for doing so (41 percent vs. 23 percent).
Every day, we talk to clients who are motivated to purchase a home for many reasons, including the pride of ownership and desire to establish roots in a community,” said D. Steve Boland, Consumer Lending executive for Bank of America. “Today’s aspiring homebuyers want to be selective and believe they should wait until they can afford to buy a home they’ll live in for years to come. They’re also realistic about the need to save for a down payment. In the end, we look holistically at our client’s life priorities so they can fully understand the personal ramifications of what is perhaps the most significant financial transaction they will ever make.”
Other insights from the Bank of America Homebuyer Insights Report include:
More first-time homebuyers are motivated by emotional factors (76 percent) than financial factors (63 percent) when making the decision to buy a home.
The same number of homebuyers consider saving for or paying off a home (92 percent) as important as saving for retirement (91 percent).
Two-thirds (66 percent) of first-time millennial homebuyers expect some kind of assistance from their parents when buying a home, ranging from financial support to assistance moving in.
The majority (75 percent) of first-time homebuyers are interested in buying a single-family home, and more than half (52 percent) are looking for a home in the suburbs.
Eighty-five percent of first-time homebuyers would use a tool that automatically withdrew money from their paycheck to save up for a home purchase.
Bank of America Consumer Lending
Bank of America’s Consumer Lending unit includes Merrill Lynch Banking, Global Wealth and Investment Management Real Estate, Home Loans and Consumer Vehicle Lending. Each business is focused on delivering a distinctive and consistent client experience through competitive product offerings, quality loan production, choice of multiple connection and delivery methods, and operational excellence based on a client’s unique attributes and relationship with us.
About the Bank of America Homebuyer Insights Report
Braun Research, Inc. (an independent market research company) conducted a nationally representative, online survey on behalf of Bank of America January 27–February 21, 2016. Braun surveyed 1,001 respondents throughout the U.S., comprised of adults 18+ who want to buy a home in the future. In addition, comparatively 300 adults were also surveyed in 10 local markets: Atlanta, Boston, Chicago, Dallas, Denver, Los Angeles, New York, San Francisco, Seattle and Washington, D.C. Braun also interviewed a total of 801 millennials (defined as 18–34 years old) in the national U.S. sample. The n=801 millennials are comprised of n=376 completes that came from the main, national sample. The remaining n=425 were obtained from an oversample of additional millennials to achieve the total n of 801. The margin of error for the national quota is +/- 3.0 percent; about +/- 5.7 percent for the oversampled markets; and about +/-3.5 percent for the national millennial group, with each reported at a 95 percent confidence level.
News Releases and Additional Information
April 6, 2016 – 2016 Bank of America Homebuyer Insights Report
April 6, 2016 – 2016 Bank of America Homebuyer Insights Report Infographic
For More Information