trulia american dream survey - fall 2011

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Is the American Dream of Homeownership Still Alive? September 20, 2011

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Is the American Dream of homeownership still alive? Since 2009, Trulia has tracked consumer sentiments on homeownership. Here are the findings from the latest survey conducted by Harris Interactive between Aug 30 - Sept 1, 2011.

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Page 1: Trulia American Dream Survey - Fall 2011

Is the American Dream of Homeownership Still Alive?September 20, 2011

Page 2: Trulia American Dream Survey - Fall 2011

About Jed:• Former associate director of research

and research fellow at the Public Policy Institute of California

• Previously worked at– Forrester Research– Office of Federal Housing Enterprise

Oversight (now FHFA)– World Bank– Progressive Policy Institute

• Earned Ph.D in Economics and A.B. in Social Studies from Harvard University

Connect with Jed:• Email: [email protected] • Twitter: @JedKolko• Blog: http://insights.truliablog.com

Hosted by Jed Kolko, Trulia’s Chief Economist

Page 3: Trulia American Dream Survey - Fall 2011

American Dream Survey

Page 4: Trulia American Dream Survey - Fall 2011

Homeownership Remains Central to the American Dream

70% of respondents said homeownership is part of

their American Dream, remaining unchanged since

January* despite...

Risk of another

recession

Confidence-shaking politics

Weak housing market

*Trulia – Harris Interactive Survey, Conducted Jan 20-24, 2011

Page 5: Trulia American Dream Survey - Fall 2011

Optimism for Long-term Housing Demand

59% of renters aspire to own their

own home80% of current

homeowners said they plan to buy another home in the future

Page 6: Trulia American Dream Survey - Fall 2011

All Ages Aspire to Own Homes

Across all age groups – even among 18-34 year olds, who have the lowest homeownership rates in the country – the majority of respondents said their American Dream includes owning a home.

14%

Respondents who say homeownership is part of personal American Dream

ALL 18-34 Yr Olds 35-44 Yr Olds 45-54 Yr Olds 55+ Yr Olds

YES 70% 65% 66% 74% 76%

NO 21% 24% 23% 18% 20%

Don’t Know 8% 11% 11% 8% 4%

Page 7: Trulia American Dream Survey - Fall 2011

Serious Financial Obstacles Block Aspiring Homeowners

More than half (57%) of current homeowners said owning a home is among the best long-term investments they could make, ahead of putting money in a 401K or other retirement accounts, but aspiring homeowners face major barriers to homeownership, including:

Page 8: Trulia American Dream Survey - Fall 2011

 American Dream Shifts Away from McMansions

Shunning super-sized homes, only 6% of Americans say their ideal home size is more than 3,200 square feet.

More than3,200 sq. ft.

2,601 –3,200 sq ft.

2,001 –2,600 sq ft.

1,401 –2,000 sq ft.

800 –1,400 sq ft Not sure

2010* 9% 13% 27% 28% 9% 14%

2011 6% 12% 27%  32% 9% 14%

Y/Y % Δ -36.6% -11.3% 3.7% 17.3% 2.3% -4.3%

?

*Trulia – Harris Interactive Survey, Conducted July 22-26, 2011

Page 9: Trulia American Dream Survey - Fall 2011

 People Still Dream Big When Searching for Homes

*Based on search traffic to Trulia.com from Aug 30 – Sept 1, 2011

*

Page 10: Trulia American Dream Survey - Fall 2011

Americans are Ready to Trade Down and Live Closer to Work

•Most adults aged 55 years or older say they want to be near more restaurants and shops. Among the homeowners within this age group, 69% plan to buy another home. This suggests an intent to trade down in favor of smaller homes in cities.

Baby Boomers

•Shorter commutes are a very high priority among 57% of 18-34 year olds, reflecting a desire to be near urban centers where employment opportunities are plentiful and transit is more accessible.

Millennials

Page 11: Trulia American Dream Survey - Fall 2011

Survey Methodology

• The August 2011 survey was conducted on line within the United States by Harris Interactive via the Quick Query omnibus product on behalf of Trulia between August 30 – September 1, 2011 among 2,207 adults (aged 18 and over) of whom 1,392 were homeowners and 758 were renters.

• The January 2011 survey was conducted on line within the United States by Harris Interactive via the Quick Query omnibus product on behalf of Trulia between January 20-24, 2011 among 2,079 adults (aged 18 and over) of whom 1,339 were homeowners and 683 were renters.

• The July 2010 survey was conducted on line within the United States by Harris Interactive via the Quick Query omnibus product on behalf of Trulia between July 22-26, 2010 among 2,055 adults (aged 18 and over) of whom 1,345 were homeowners and 663 were renters.

• Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was used to adjust for respondents’ propensity to be online. These online surveys are not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodologies, including weighting variables, please contact [email protected].

Page 12: Trulia American Dream Survey - Fall 2011

Thank You