Prudential Real Estate Outlook Survey: Home Ownership Is Increasingly
Important to Younger Americans
IRVINE, Calif., Feb. 1, 2013
IRVINE, Calif., Feb.1, 2013 /PRNewswire/ --Prudential Real Estate, an HSF
Affiliates LLC company, today released its end-of-year Outlook Survey, which
shows that Millennials and Generation X place a higher importance on and hold
more favorable views toward homeownership than older generations. According to
the national survey, confidence increased marginally among respondents with
73% at least somewhat confident in the recovering real estate market and
property values as opposed to 72% in Q2.
Additionally, "Contemplators", survey participants who considered but did not
buy/sell a property during the past year, displayed a 10% increase in
confidence over Q2 figures for both the U.S. real estate market and home
prices indicating they will likely keep their eye on the market.
"Millennials and Generation X – about 85 million people strong – face a unique
opportunity in U.S. housing," said Earl Lee, chief executive officer at HSF
Affiliates LLC and president of Prudential Real Estate. "They are generally
optimistic about homeownership and, by nature, share a strong sense of
community. As important, many were not impacted by the real estate downturn
and are looking at today's buying opportunities with keen interest."
Key observations include:
oHome ownership remains important to 96% of Americans with 77% of
respondents ages 25-34 and 78% ages 35-44 indicating home ownership is
"very important." More so, 74% of respondents agree that with interest
rates at historically low levels now is a great time to buy a home.
oSpace, safety and investment drive the reasons to own a home, with 97%
respondents stating that home ownership allows for more control over
living space. Tax benefits finished a distant sixth on the survey's
reasons for buying a home.
o63% of Americans have a favorable or somewhat favorable perception of the
U.S. residential real estate market and, again, younger generations are
more likely to possess a favorable opinion when compared to their older
"We feel there are many contemplating real estate now," said Lee. "With
interest rates near historic lows and prices in many markets still well off
their highs, a home remains one of the best long-term investments people will
However, the survey also shows consumers remain cautious about real estate
process, with 62% of respondents stating that obtaining financing is more
challenging than it was pre-financial crisis. Given the dynamics and
challenges of the market, 72% feel that having a trusted partner for the
process is important, with younger generations being most concerned about
finding reliable sources of information.
"The housing market has finally turned the corner," said Stephen Phillips,
chief operating officer for HSF Affiliates LLC. "It's been a tough road but
the momentum we are seeing across the economy and real estate market appears
sustainable. Real estate agents have a real opportunity to develop new
relations with a younger generation ready to invest in a home, and with others
who are returning to the market thanks to improving conditions."
The full survey details are available upon request and infographic
illustrating those points is available here.
Prudential Real Estate Outlook Survey Methodology
Interviews with 5,000 Americans who are "in the market" to buy or sell a home
were conducted online by EdelmanBerland, between December 5-14, 2012.
Respondents are aged 25-64 with a household income of at least $50,000, and
either recently bought/sold a home or are considering buying/selling a home.
The margin of error is+/- 1.4% for all respondents.
About Prudential Real Estate and HSF Affiliates LLC
Prudential Real Estate is a part of the HSF Affiliates LLC real estate
brokerage family, which includes Real Living Real Estate and the new Berkshire
Hathaway HomeServices(SM) brand available later in 2013. Prudential Real
Estate franchisees are independently owned and operated. Companies are
selected based upon outstanding performance records and high levels of
HSF Affiliates LLC, based in Irvine, Calif., is a joint venture of
HomeServices of America and Brookfield Residential Property Services.
Prudential, the Prudential logo and the Rock symbol are service marks of
Prudential Financial, Inc. and its related entities and are used under
license, with no other affiliation with Prudential.
SOURCE HSF Affiliates LLC
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