Miami-Area Homebuyers Prioritize Saving, Look to Purchase in the Near Term
Bank of America Survey Reveals Locals Seek Financial Benefits of Homebuying
First-time buyers in the Miami metro area place a significant emphasis on saving and see homeownership on the horizon, according to the second annual Bank of America Homebuyer Insights Report. Nearly three-quarters of aspiring buyers in the area cite saving for a home as a major priority, ahead of improving credit scores (71 percent) and saving for retirement (66 percent). This is more than the national average (45 percent) and higher than any of the 10 local markets surveyed. Their focus on saving may be paying off, as prospective Miami buyers are among the most likely to plan to purchase their first home within the next two years (46 percent).
The report, a second annual study exploring homebuying perceptions and behaviors among adult consumers, also found that amid rising rental rates across the country, 78 percent of Miami-area homebuyers believe owning is more affordable than renting. In fact, more than half of Miami owners purchased their first home because they thought money spent on rent would be better invested toward a mortgage.
Miami-specific highlights from the report include:
Experienced Miami buyers say value goes beyond dollars and cents
Current owners in Miami (83 percent) overwhelmingly say homeownership has a positive impact on their long-term financial picture.
Beyond financial value, local owners also see clear emotional benefits of homeownership, as nearly all are proud of owning their home (95 percent) and treasure the memories they have made (90 percent).
Only 36 percent of Miami homeowners say a home’s value is determined by how much it cost to purchase, but they are increasingly investing in this asset. Eighty-eight percent look for ways to make their home more valuable, and 66 percent spend a lot of free time working on their home.
Aspiring Miami homeowners planning to purchase, open to financial support
More than two in five Miami residents say they will buy their first home within the next two years, and 43 percent have started to plan for a down payment.
Local first-time buyers are open to support. Sixty-four percent think they would qualify for a down payment assistance program, and 79 percent say they would take advantage of these programs.
Motivations to purchase among Miami homebuyers
When making the decision to buy their first home, prospective homeowners are equally motivated by believing money spent on rent would be better invested toward a mortgage (45 percent) and wanting a place to call their own (42 percent).
In line with the aspiring homeowners in their area, current Miami owners purchased their first home because they wanted a place to call their own (55 percent), higher than all markets surveyed. They also thought money spent on rent would be better invested toward a mortgage (53 percent) and had the financial means to purchase (44 percent).
Miami owners reflect on their homebuying experience
When Miami homeowners decided to buy, they were more likely than their national counterparts and all markets surveyed to set a budget (50 percent vs. 40 percent nationally). They also engaged a real estate professional (45 percent) and went to open houses (41 percent).
- In looking back at their homebuying experience, current Miami homeowners’ advice includes: start saving for a home early (66 percent), create and stick to a budget (34 percent), consider the maintenance costs and unexpected expenses (33 percent), and buy a home early to start building equity (26 percent).
For additional information about the Bank of America Homebuyer Insights Report, please visit www.bankofamerica.com/homebuyersreport.
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About the Bank of America Homebuyer Insights Report
This survey was conducted by GfK Public Communications and Social Science, using GfK’s KnowledgePanel®, which yields results that are statistically representative and projectable to the American population. The survey was conducted online January 24–February 2, 2017. A total of 4,906 adults age 18+ were surveyed, including 1,268 current homeowners and 435 prospective homeowners. In addition, an augment was conducted to achieve 300 adults in 10 local markets: Boston, Charlotte, Chicago, Dallas, Denver, Houston, Phoenix, Miami, St. Louis, and New York. The margin of sampling error for national data is +/- 3.0 percentage points.
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 46 million consumer and small business relationships with approximately 4,600 retail financial centers, approximately 15,900 ATMs, and award-winning online banking with approximately 34 million active accounts and nearly 22 million mobile active 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.
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Kris Yamamoto, Bank of America, 1.805.526.1910