Why do People Actually Buy a Home?
It seems that every time we talk about real estate today the conversation immediately goes to the financial aspects of buying a home. Where are prices headed? Where are interest rates headed? Should I wait to try and get a ‘better buy’? Should I wait until I can get a ‘steal’?The odd thing about all these questions is that survey after survey keeps telling us that price is not the reason families actually buy a home. When money is considered at all, it is in light of not paying rent to a landlord. Let’s look at two recent surveys as examples:
National Housing Survey
The top five reasons given in the survey for buying a home, in order, are:
- It means having a good place to raise children and provide them with a good education
- You have a physical structure where you and your family feel safe
- It allows you to have more space for your family
- It gives you control of what you do with your living space (renovations and updates)
- Paying rent is not a good investment
The Myers Research and Strategic Services Survey
The top five reasons given in the survey for buying a home, in order, are:
- Home ownership provides a stable and safe environment for children and other family members
- Home ownership means the money you spend on housing goes towards building equity, rather than to a landlord
- Home ownership creates the opportunity to pay off a mortgage and own your home by the time you retire
- Home ownership creates the opportunity to live in a neighborhood that you enjoy
- Home ownership allows you the right to decorate, modify and renovate your home as you see fit
Bottom Line
Price dominates conversation when we talk about buying a home. However, when it comes down to it, we actually buy for the same reasons our parents and grandparents did we want a better lifestyle for ourselves and our families.
