Amid an elevated mortgage rate environment, consumers are reevaluating their priorities when it comes to purchasing real estate. According to a recent nationwide survey conducted by Coldwell Banker, the price of a home carries more weight in the decision-making process than its location.
Price was the most important factor when choosing a home for 56% of survey respondents, while location was cited by 50% of respondents. Women (60%) also exhibited a stronger inclination toward prioritizing price compared to their male counterparts (48%).
And despite economic uncertainties looming over the housing market, a majority (56%) of respondents remain buoyant about the future of real estate. This optimism is reflected in their belief that the housing landscape will either improve or maintain its stability compared to last year.
Another noteworthy trend discerned from the survey is the growing propensity for migration among consumers. Notably, 39% of respondents reportedly considered relocating to a different city following the sale of their current residence, an increase from the 19% share in 2022.
Social media shapes home preferences
Social media platforms wield considerable influence over consumer behavior, including in the realm of real estate. In total, 43% of survey participants reported being either “somewhat influenced” or “highly influenced” by social media in shaping their home preferences.
This receptiveness to social media is more pronounced among younger demographics, with 64% of consumers between the ages of 18 and 24 citing social media as a significant factor in their decision-making process. TikTok emerges as a frontrunner in influencing the preferences of younger adults, while Facebook maintains its relevance among older demographics.
Generational and racial disparities
While more than one-quarter of respondents (26%) have either not provided or do not intend to provide financial assistance to their offspring for their first home, younger respondents ages 25 to 34 display a greater propensity (49%) toward offering such support.
Moreover, the survey revealed a greater likelihood among Black Americans (46%) and American Indian or Alaska Natives (49%) to financially aid their children in acquiring their first home. And 58% of respondents agreed with the perception that homes are assets to be passed down to children.
Profile of the ideal home
Almost one-third of respondents (32%) expressed a preference for homes situated in the South, while 24% favored properties in the Northeast.
When it comes to architectural styles, ranch homes emerged as the preferred choice, garnering 13% of the vote, followed closely by “modern contemporary” designs at 11%. But a substantial proportion (16%) remained indifferent to any particular architectural style.
Coldwell Banker collaborated with Censuswide on the survey. The research was conducted from Nov. 27 to Dec. 11, 2023, and included 1,053 respondents.
