Chicago Area Homebuyers Look to Upsize, Shop the Suburbs
Inaugural Bank of America Homebuyer Insights Report Reveals Buyers Prioritize Cost and Neighborhood When Purchasing a Home
As peak homebuying season begins, Chicago metro area homebuyers are looking for more space (42 percent) and a home in the suburbs (67 percent), according to the inaugural Bank of America Homebuyer Insights Report, released today. More Chicago area buyers are interested in a suburban home than homebuyers nationally (54 percent) and any other market surveyed.
When considering a prospective home, cost (85 percent) and neighborhood (73 percent) are extremely important to Chicago buyers. Fifty-eight percent also consider the floor plan and layout to be very important. Seventy-four percent of homebuyers in Chicago are interested in buying a single-family home.
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.
Chicago-specific highlights from the report include:
Chicago area homebuyers are driven by aspiration and emotion
Aspirational and emotional factors motivate 74 percent of Chicago first-time homebuyers. When making the decision to buy a home, half say they want a place to call their own, 45 percent cite owning a home as something they have always wanted to do, and 36 percent want a place to make memories.
Chicago buyers define homeownership as responsibility (64 percent), family (62 percent), happiness (61 percent), and security (61 percent).
Aspiring Chicago homeowners want to save more, willing to sacrifice
Sixty-two percent of Chicago 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 (91 percent) first-time buyers in Chicago would be willing to make sacrifices to make homeownership a reality.
Seventy-eight percent of experienced Chicago homebuyers sacrificed something the last time they purchased a home.
Seventy-four 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-five percent Chicago buyers consider saving for or paying off a home to be important. A similar number (91 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-one percent of experienced Chicago homebuyers spent more than what they budgeted on the total cost of their first home.
Local millennial homebuyers expect support from their parents
Sixty-seven percent of millennial homebuyers in Chicago 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.
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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.
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