BANK OF AMERICA

Newsroom

 

Facts & Resources

Boston Area Homebuyers Want a Place to Grow Into, but Wait for Marriage, Children

Inaugural Bank of America Homebuyer Insights Report Reveals Buyers Prioritize Cost and Neighborhood When Purchasing a Home

Wednesday, April 6, 2016 9:00 am EDT

Dateline:

Boston, Mass.

As peak homebuying season begins, 47 percent of first-time homebuyers in the Boston metro area think money spent on rent would be better spent toward a mortgage, according to the inaugural Bank of America Homebuyer Insights Report, released today. However, first-time Boston buyers have not purchased a home yet because they are waiting for a life stage event (27 percent), such as marriage or having children. This is higher than the national average of 16 percent, and more than any other market surveyed.  

When considering a prospective home, cost (80 percent) and neighborhood (66 percent) are extremely important to Boston area buyers. Fifty-five percent also consider the floor plan and layout to be very important. Seventy-two percent of Bostonians are interested in buying a single-family home, and 61 percent are looking to settle down in the suburbs.

The Bank of America Homebuyer Insights Report explores the attitudes, behaviors and preferences of the modern homebuyer, based on a national survey of more than 1,000 adults ages 18 and older 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. 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, defined as those between ages 18 and 34.

Boston-specific highlights from the report include:


Boston area homebuyers are driven by aspiration and emotion

  • Aspirational and emotional factors motivate three-quarters of Boston first-time homebuyers. When making the decision to buy a home, 53 percent want a place to call their own, 51 percent cite owning a home as something they have always wanted to do, and 33 percent want to put roots down.

  • Boston buyers define homeownership as security (62 percent), family (59 percent), a place where memories are made and kept (58 percent), and happiness (57 percent).


Aspiring Boston homeowners want to save more, willing to sacrifice

  • Sixty-four percent of Boston first-time buyers have not purchased a home before now because they did not think they could afford a home or the type of home they would like to buy.

  • Nearly all (95 percent) first-time buyers in Boston would be willing to make sacrifices to make homeownership a reality.

  • Eighty-one percent of experienced Boston homebuyers sacrificed something the last time they purchased a home.

  • Seventy-six percent of local first-time buyers are looking for a home that they can grow into, rather than one that fits their needs today. This is consistent with first-time homebuyers nationally, as 75 percent say the same.


Saving for a home as important as saving for retirement

  • Ninety-four percent of Boston buyers consider saving for or paying off a home to be important. A similar number (92 percent) believe saving for retirement is important.

  • Understanding the importance of saving for a home, many local first-time buyers said they would appreciate help doing it: 85 percent would use a tool that withdraws money from their paycheck to save for a home purchase.

  • Twenty-two percent of experienced Boston homebuyers spent more than what they budgeted on the total cost of their first home.


Local millennial homebuyers expect support from their parents

  • Three-quarters of millennial homebuyers in Boston expect some kind of assistance from their parents when buying a home, ranging from financial support to assistance moving in.


For additional information about the Bank of America Homebuyer Insights Report, please click here.

 

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.

Bank of America
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 47 million consumer and small business relationships with approximately 4,700 retail financial centers, approximately 16,000 ATMs, and award-winning online banking with approximately 32 million active users and approximately 19 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in all 50 states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

© 2016 Bank of America Corporation. All rights reserved.

Visit the Bank of America newsroom for more Bank of America news, and click here to register for news email alerts.

www.bankofamerica.com 

###

Reporters May Contact:
Kris Yamamoto, Bank of America, 1.805.526.1910
kris.yamamoto@bankofamerica.com