webinar: 2013 investment and vacation home buyers survey

8/13/2019 Webinar: 2013 Investment and Vacation Home Buyers Survey

1/22

Summer Webinar Series:2013 Investment and

Vacation Home

Buyers Survey

Jessica Lautz

August 6, 2013


2/22

Methodology

Online panel

Based on representative panel of U.S. households

2,326 households respondedrepresents 2,751 home purchases


3/22

Share of Sales


4/22

Share of Home Sales

Primary65%

Vacation11%

Investment24%


5/22

Share of Sales 2012-2003

0% 20% 40% 60% 80% 100%

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

22%

25

28

22

21

21

17

17

27

24

12%

11

12

14

12

9

10

10

11

11

67%

64

60

64

67

70

73

73

61

65

Investment

Properties

Vacation

Properties

Primary

Residences


6/22

BuyerCharacteristics


7/22

Buyer Demographics

PrimaryBuyers

VacationBuyers

InvestmentBuyers

Median Age 40 47 45

Median Household Income $76,600 $92,100 $85,700

Percent With 2 Income Earners 49% 48% 48%Racial/Ethnic Background

White/Caucasian 84% 78% 75%

Asian/Pacific Islander 7 10 14

Black/African American 6 10 8

Hispanic/Latino 4 4 4


8/22

Age Vacation and Investment Buyers

2005-2013

52

44 46 46 46

4950

47

49

39

42

47

45 45

50

45

35

37

39

41

4345

47

49

51

5355

2005 2006 2007 2008 2010 2011 2012 2013

Vacation Buyers Investment Buyers


9/22

Income Vacation and Investment Buyers

2005-2013

$80,600

$102,200

$92,100

$75,900

$90,250

$92,900

$85,700

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

$110,000

2005 2006 2007 2008 2010 2011 2012 2013



10/22

Property Characteristics


11/22

Property Differences

Primary

Buyers

Vacation

Buyers

Investment

Buyers

Median Distance to Primary NA 435 21

Location

Small town 18% 21% 25%

Rural area 18 17 20Suburb/Subdivision 45 21 28

Urban area/Central City 18 21 20

Resort area 1 19 7

Type of Home

Detached single-family 82% 60% 58%

Townhouse or row house 5 10 12

Condo/duplex 5 12 10


12/22

Purchasing and Financing


13/22

First Step in the Home Search

Primary

Buyers

Vacation

Buyers

Investment

Buyers

Looked online for properties for sale 30% 26% 21%

Looked online for information aboutthe home buying process 14 18 10

Contacted a real estate agent 13 15 15

Talked with a friend or relative aboutthe home buying process 8 7 13

Drove-by homes/neighborhoods 7 6 10

Visited open houses 6 8 7


14/22

How Buyer Purchased the Home

0%

10%

20%

30%

40%

50%

60%

70%

Through a realestate agent or

broker

Foreclosure ortrustee sale

Directly fromowner whom

the buyer knew

Directly fromowner whom

the buyer didntknow

Directly frombuilder or

builders agent

69%

2

7 68

59%

1012

63

47%

12

17

53

PrimaryResidences

VacationProperties

InvestmentProperties


15/22

Difficulty of Financing

1419 21

2323

25

42 3938

21 20

16

0%

10%

20%

30%

40%

50%

60%

70%

80%90%

100%

PrimaryResidences

VacationProperties


Less difficult than expectedNot difficult/nothing beyond what expected

Somewhat more difficult than expectedMuch more difficult than expected


16/22

Investment and Vacation Buyers Used a

Mortgage 2007-2013

7570 68 70

6358

53

6863

56

51

39

47 49

20

30

40

50

60

70

80

2007 2008 2009 2010 2011 2012 2013



17/22

Percent of Home Financed


Less than 70% 44 43

70% to 79% 23 24

80% to 89% 19 1890% to 94% 7 3

95% to 99% 3 5

100%Financed the entirepurchase price with a mortgage 5 8


18/22

Motivation and Expectations


19/22

Reasons for Purchasing Home

Vacation

Properties

Investment

Properties

To use for vacations or as a family retreat 80% 20%

To use as principal residence in the future 27 8

To rent to others 23 55To diversify investments/Good investmentopportunity 23 30

For a family member, friend or relative 11 16

Because the buyer had extra money to spend 11 7

For the tax benefits 10 15


20/22

Length of Time Plan on Owning

0%

10%

20%

30%

40%

50%

60%70%

80%

90%

100%

VacationProperties


6 8

1418

1613

3029

31 26

Less than 1 year 1 to less than 6 years 6 to less than 11 years

11 or more years Dont know

Median=10 Median=8


21/22

Outlook of Buyers

47% of investment buyers and

37% of vacation buyers are likely

to buy an investment property

again in the next 2 years

31% of investment buyers and

29% of vacation buyers are likely

to buy a vacation property again in

the next 2 years

78% of vacation buyers and 78%

of investment buyers think its a

good time to purchase real estate


22/22

Where to find NAR Research

Jessica Lautz:[email protected], 202-383-1155

NAR Researchwww.realtor.org/research-and-statistics

Economists Outlook Blog:economistsoutlook.blogs.realtor.org

FaceBook: facebook.com/narresearchgroup

Twitter: twitter.com/NAR_Research
mailto:[email protected]://www.realtor.org/research-and-statisticshttp://economistsoutlook.blogs.realtor.org/http://www.facebook.com/narresearchgrouphttps://twitter.com/NAR_Researchhttps://twitter.com/NAR_Researchhttps://twitter.com/NAR_Researchhttp://www.facebook.com/narresearchgrouphttp://www.facebook.com/narresearchgrouphttp://economistsoutlook.blogs.realtor.org/http://www.realtor.org/research-and-statisticshttp://www.realtor.org/research-and-statisticshttp://www.realtor.org/research-and-statisticshttp://www.realtor.org/research-and-statisticshttp://www.realtor.org/research-and-statisticshttp://www.realtor.org/research-and-statisticsmailto:[email protected]

webinar: 2013 investment and vacation home buyers survey

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