Throughout most areas in the United States there is a large over supply in real estate inventory, especially among the larger homes. A recent study by Trulia shows that American's have changed their attitudes towards the kind of real estate they want to buy. Most American's just want a modest home, and very few actually want the McMansions that were so popular during the housing boom.
The survey shows that only 9% of American adults want a house that is bigger than 3,200 square feet, and just 13% want houses between 2,600 and 3,200 square feet. 55% of the respondents surveyed said that the ideal home would be between 1,400 and 2,600 square feet. Just 9% desired homes smaller than 1,400 square feet, and 14% just didn't know what they wanted.
American's attitudes aren't just changing towards a desire for smaller homes, many actually feel that home ownership is no longer part of the American Dream. At the height of the housing boom 77% of American's thought it essential to own real estate in order to achieve their own personal American Dream. Now, that amount is down to 72%.
One of the key indicators that lead to these low results is the lack of jobs. People that don't have good paying jobs don't dream big. The biggest reason homeowners indicated that they wouldn't be interested in buying a new home is money. 59% said they needed more money for a down payment. 35% said they needed a new job to be able to afford a home. 29% said they might be persuaded to buy if they got a promotion or pay raise.
Until we see the job market improve, we will likely not see the housing market improve. 68% of those surveyed said that they wouldn't buy a house for at least two years, and 27% of current renters may never buy a house at all.
Up until now, the average home size has increased every decade for nearly a century. That trend has change and American's are finally becoming more moderate in their desire for a home. While the recession continues, owners of larger homes will have a very hard time selling. Real estate values of these big homes will likely see substantial declines.
The survey shows that only 9% of American adults want a house that is bigger than 3,200 square feet, and just 13% want houses between 2,600 and 3,200 square feet. 55% of the respondents surveyed said that the ideal home would be between 1,400 and 2,600 square feet. Just 9% desired homes smaller than 1,400 square feet, and 14% just didn't know what they wanted.
American's attitudes aren't just changing towards a desire for smaller homes, many actually feel that home ownership is no longer part of the American Dream. At the height of the housing boom 77% of American's thought it essential to own real estate in order to achieve their own personal American Dream. Now, that amount is down to 72%.
One of the key indicators that lead to these low results is the lack of jobs. People that don't have good paying jobs don't dream big. The biggest reason homeowners indicated that they wouldn't be interested in buying a new home is money. 59% said they needed more money for a down payment. 35% said they needed a new job to be able to afford a home. 29% said they might be persuaded to buy if they got a promotion or pay raise.
Until we see the job market improve, we will likely not see the housing market improve. 68% of those surveyed said that they wouldn't buy a house for at least two years, and 27% of current renters may never buy a house at all.
Up until now, the average home size has increased every decade for nearly a century. That trend has change and American's are finally becoming more moderate in their desire for a home. While the recession continues, owners of larger homes will have a very hard time selling. Real estate values of these big homes will likely see substantial declines.
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