BANK OF AMERICA

Newsroom

 

Facts & Resources

San Francisco Area First-Time Homebuyers Willing to Sacrifice, Driven by Factors Other than Finances

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:

San Francisco, Calif.

As peak homebuying season begins, more San Francisco Bay Area first-time buyers are motivated by emotional factors (76 percent) than financial factors (66 percent) when making the decision to buy a home, according to the inaugural Bank of America Homebuyer Insights Report, released today. Specifically, 51 percent say they want a place to call their own, 49 percent cite owning a home as something they have always wanted to do, and 27 percent want a place to put roots down.

When considering a prospective home, cost (81 percent) and neighborhood (69 percent) are extremely important to San Francisco area buyers. Forty-nine percent also consider the floor plan and layout to be very important. Seven in 10 buyers in San Francisco are interested in buying a single-family home, 58 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.

San Francisco-specific highlights from the report include:


San Francisco area homebuyers are willing to sacrifice

  • Nearly all (96 percent) first-time buyers in San Francisco would be willing to make sacrifices to make homeownership a reality.

  • Eighty-six percent of experienced buyers in San Francisco sacrificed something the last time they purchased a home, which is higher than the national average (76 percent) and any other market surveyed.

  • San Francisco buyers define homeownership as family (68 percent), security (65 percent), responsibility (61 percent), and happiness (57 percent).


Aspiring San Francisco homeowners want a home to grow into

  • Seventy-eight 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.

  • Fifty-nine percent of first-time San Francisco 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.


Saving for a home as important as saving for retirement

  • Ninety-two percent San Francisco buyers consider saving for or paying off a home to be important. A similar number (93 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: 86 percent would use a tool that withdraws money from their paycheck to save for a home purchase.

  • Thirty-six percent of experienced San Francisco homebuyers spent more than what they budgeted on the total cost of their first home; less than a quarter of experienced homebuyers nationwide went over their budget.


Local millennial homebuyers expect support from their parents

  • Seventy-six percent of millennial homebuyers in San Francisco 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