The document summarizes how home buying demographics and search methods are changing. Younger buyers now make up a larger share of the market and prefer to do online research. Some of their key online tools include photos, detailed property information, interactive maps and virtual tours. The median home price and interest rates declined in 2015, making homes affordable to more families. Features like kitchen islands, granite countertops and walk-in closets are popular upgrades buyers are willing to pay more for.

1. The Evolving
Search for a
New Home
Home buyer demographics are changing—and so
are searches for new homes. Savvy builders and
real estate professionals can use this
knowledge to attract a new generation of buyers.
FOR
SALE
BUILDERS & BUYERS:
were existing homes
SOLD
4,940,000437,000were newly constructed
HOW TODAY’S BUYERS FIND HOMES
The digital revolution has changed the way home buyers research potential homes.
ANNUAL SALARY NEEDED TO BUY A HOME IN A METRO AREA:
MORE AMERICANS CAN AFFORD TO BUY
HOW MUCH INCOME DOES IT TAKE?
Pittsburgh
Cleveland
Cincinnati
St. Louis
Detroit
Atlanta
Tampa
Phoenix
San Antonio
Orlando
Minneapolis
Philadelphia
Dallas
Houston
Baltimore
Chicago
Sacramento
Miami
Portland
Denver
Seattle
Boston
New York City
Los Angeles
San Diego
San Francisco $147,996
$103,165
$25K $50K $75K $100K $125K $150K
$95,040
$86,770
$83,151
$78,425
$68,436
$65,917
$63,048
$62,143
$57,983
$52,865
$52,164
$51,806
$51,622
$50,251
$47,811
$46,975
$43,938
$41,923
$37,551
$36,915
$34,778
$33,967
$32,523
$31,134
INFORMATION SOURCES USED IN HOME SEARCHES INCLUDE:
RESEARCHING HOME PURCHASES
OF THE HOMES SOLD IN 2014:
NEW VS. EXISTING HOME SALES
88% 87% 54% 50%
Website Real estate
professional
Mobile or tablet
search engine
Mobile or tablet
website or app
48% 26% 26%
Yard Sign Open house Online video site
FOR
SALE
•
•
•
•
•
•
•
•
•
•
•
•
ONLINE TOOLS BUYERS FIND USEFUL:
Photos
Detailed property info
Interactive maps
Virtual tours
Neighborhood info
TOP ONLINE RESEARCH TOOLS
83%
79%
41%
40%
37%
USING A REAL ESTATE AGENT
NEW OPPORTUNITIES IN THE HOUSING MARKET
Shifts in the housing market have opened new doors for younger
home buyers who previously weren’t able to afford a home.
HOME PRICES AND INTEREST RATES
FELL IN 2015:
Median new home price:
$292,000 to
$278,000
Average
interest rate:
4.29% to
4.03%
of new and existing homes sold are
affordable to families that earn the U.S.
median income of $65,800 a year.
Some lenders require only a
A NEW GENERATION OF BUYERS
$25K $50K $75K $100K
MEDIAN: $65,800
66.5%
3%DOWN
PAYMENT.
of all home buyers are Millennials
age 35 or younger—the largest
generational group buying
homes.*
35%
of Millennial
buyers purchase
new homes.
11%
*Includes new and previously owned homes.
74% They’re budgeting
$240,000
to make the purchase
of Americans 18 to 34
plan to buy a new home
in the next 5 years.
a 24%
increase
over 2014.
WHAT DO BUYERS WANT TO KNOW?
Understanding the desired home specifications and builder qualifications can
help real estate professionals and builders boost sales. Buyers want to know
these valuable details from their:
REAL ESTATE
PROFESSIONAL
YOUNGER BUYERS ARE MOST LIKELY TO TURN TO A REAL ESTATE PROFESSIONAL
91%33 and younger
34-48
88%
49-58
88%
59-67
83%
68-88
87%
POPULAR HOME FEATURES
PERCENTAGE OF HOME BUYERS WILLING TO PAY EXTRA FOR:
BUILDER
Kitchen island: 48%
Eat-in kitchen: 40%
New kitchen
appliances: 69%
Granite countertops: 55% Ensuite master
bath: 49%
Walk-in closets: 60%
Fireplace: 40%
Central air: 69%
Hardwood floors: 54%
Home less than 5 years old: 40%
40% to 49% 50% to 59% over 60%
ROLE OF HOME WARRANTIES
of buyers are more
apt to choose a new
home with a
STRUCTURAL
WARRANTY.
94% of buyers prefer a
home with a
SYSTEMS AND
APPLIANCES
WARRANTY.
80%SOLD
Warranted homes sell up to
50%
FASTER.
Systems and appliance
warranties boost sales
prices by
3%.
UP
TO
• Layout
• Outdoor living spaces
• Type and size of home
• Distance from work, shopping,
and medical facilities
• Distance from public
transportation
• Access to schools,
recreational facilities, places
of worship and parks
• NAHB certified
• Licensed, insured and bonded
• Not involved in any lawsuits
or liens
• Clean record with the BBB
• Reputation for quality work
• Available amenities, upgrades
and costs
• Home builder warranty
guaranteeing workmanship
Sources: Newhomesguide.com, NAHB.org, Realtor.org,
Time.com, HSH.com, Usatoday.com, Sibcycline.com,
Census.gov, Books.google.com, Prestigehomes.ca
www.pwsc.com © 2016 Professional Warranty Service Corporation
Infographic designed by Mad Fish Digital